2
| Year Ended December 31, | 2011 | 2010 | 2009 | |||||||||
| (in millions) | ||||||||||||
| Gains (Losses) |
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| Insurance monoline structured credit products(1) |
$ | 15 | $ | 93 | $ | (152 | ) | |||||
| Other structured credit products(1) |
77 | 126 | (217 | ) | ||||||||
| Mortgage whole loans held for sale including whole loan purchase settlement (predominantly subprime)(2) |
(22 | ) | 50 | (233 | ) | |||||||
| Other-than-temporary impairment on securities available-for-sale(3) |
- | (79 | ) | (124 | ) | |||||||
| Leverage acquisition finance loans(4) |
(16 | ) | 42 | 284 | ||||||||
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| Total gains (losses) |
$ | 54 | $ | 232 | $ | (442 | ) | |||||
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| At December 31, | 2011 | 2010 | 2009 | |||||||||
| (in millions) | ||||||||||||
| On-balance sheet commercial allowance: |
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| Specific |
$ | 213 | $ | 178 | $ | 326 | ||||||
| Collective |
207 | 322 | 518 | |||||||||
| Unallocated |
22 | 23 | 63 | |||||||||
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| Total on-balance sheet commercial allowance |
442 | 523 | 907 | |||||||||
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| Off-balance sheet commercial allowance |
155 | 94 | 188 | |||||||||
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| Total commercial allowances |
$ | 597 | $ | 617 | $ | 1,095 | ||||||
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| 2011 | 2010 | |||||||||||||||||||||||||||||||
| Dec. 31 | Sept. 30 | June 30 | Mar. 31 | Dec. 31 | Sept. 30 | June 30 | Mar. 31 | |||||||||||||||||||||||||
| (dollars are in millions) | ||||||||||||||||||||||||||||||||
| Dollars of delinquency: |
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| Interest-only loans |
$ | 133 | $ | 127 | $ | 114 | $ | 127 | $ | 169 | $ | 153 | $ | 164 | $ | 214 | ||||||||||||||||
| ARM loans |
452 | 443 | 407 | 407 | 471 | 486 | 535 | 634 | ||||||||||||||||||||||||
| Delinquency ratio: |
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| Interest-only loans |
3.25 | % | 3.12 | % | 4.10 | % | 4.56 | % | 4.52 | % | 5.48 | % | 5.79 | % | 7.26 | % | ||||||||||||||||
| ARM loans |
5.08 | 5.10 | 4.93 | 5.03 | 5.73 | 6.06 | 6.71 | 7.94 | ||||||||||||||||||||||||
| 3(i) | Articles of Incorporation and amendments and supplements thereto (incorporated by reference to Exhibit 3(a) to HSBC USA Inc.’s Annual Report on Form 10-K for the year ended December 31, 1999, Exhibit 3 to HSBC USA Inc.’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2000, Exhibits 3.2 and 3.3 to HSBC USA Inc.’s Current Report on Form 8-K filed April 4, 2005; Exhibit 3.2 to HSBC USA Inc.’s Current Report on Form 8-K filed October 14, 2005 and Exhibit 3.2 to HSBC USA Inc.’s Current Report on Form 8-K filed May 22, 2006). | |
| 3(ii) | By-Laws (incorporated by reference to Exhibit 3.3 to HSBC USA Inc.’s Current Report on Form 8-K filed May 17, 2010). | |
| 4.1 | Senior Indenture, dated as of March 31, 2009, by and between HSBC USA Inc. and Wells Fargo Bank, National Association, as trustee, as amended and supplemented (incorporated by reference to Exhibit 4.1 to HSBC USA Inc.’s Registration Statement on Form S-3, Registration No. 333-158358). | |
| 4.2 | Senior Indenture, dated as of March 31, 2006, by and between HSBC USA Inc. and Deutsche Bank Trust Companies Americas, as trustee, as amended and supplemented (incorporated by reference to Exhibit 4.1 to HSBC USA Inc.’s Registration Statement on Form S-3, Registration No. 333-133007, Exhibit 4.16 to HSBC USA Inc.’s Current Report on Form 8-K filed April 21, 2006, Exhibit 4.17 to HSBC USA Inc.’s Current Report on Form 8-K filed August 15, 2008, Exhibit 4.18 to HSBC USA Inc.’s Current Report on Form 8-K filed August 15, 2008, Exhibit 4.19 to HSBC USA Inc.’s Current Report on Form 8-K filed December 16, 2008, and Exhibit 4.20 to HSBC USA Inc.’s Current Report on Form 8-K filed December 17, 2008). | |
| 4.3 | Senior Indenture, dated as of October 24, 1996, by and between HSBC USA Inc. and Deutsche Bank Trust Companies Americas (as successor in interest to Bankers Trust Company), as trustee, as amended and supplemented (incorporated by reference to Exhibits 4.1 and 4.2 to Post-Effective Amendment No. 1 to HSBC USA Inc.’s Registration Statement on Form S-3, Registration No. 333-42421, and Exhibit 4.1 to HSBC USA Inc.’s Current Report on Form 8-K filed November 28, 2005). | |
| 4.4 | Subordinated Indenture, dated as of October 24, 1996, by and between HSBC USA Inc. and Deutsche Bank Trust Companies Americas (as successor in interest to Bankers Trust Company), as trustee, as amended and supplemented (incorporated by reference to Exhibits 4.3, 4.4, 4.5 and 4.6 to Post-Effective Amendment No. 1 to HSBC USA Inc.’s Registration Statement on Form S-3, Registration No. 333-42421, and Exhibit 4.1 to HSBC USA Inc.’s Current Report on Form 8-K filed September 27, 2010). | |
| 12 | Computation of Ratio of Earnings to Fixed Charges and Earnings to Combined Fixed Charges and Preferred Stock Dividends. | |
| 14 | Code of Ethics for Senior Financial Officers (incorporated by reference to Exhibit 14 to HSBC USA Inc.’s Annual Report on Form 10-K for the year ended December 31, 2006). | |
| 21 | Subsidiaries of HSBC USA Inc. | |
| 23 | Consent of KPMG LLP, Independent Registered Public Accounting Firm. | |
| 24 | Power of Attorney (included on the signature page of this Form 10-K). | |
| 31 | Certification of Chief Executive Officer and Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |
| 32 | Certification of Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |
| 101.INS | XBRL Instance Document(1,2) | |
| 101.SCH | XBRL Taxonomy Extension Schema Document(1,2) | |
| 101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document(1,2) | |
| 101.DEF | XBRL Taxonomy Extension Definition Linkbase Document(1,2) | |
| 101.LAB | XBRL Taxonomy Extension Label Linkbase Document(1,2) | |
| 101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document(1,2) | |
| HSBC USA INC. | ||
| By: | /s/ Irene M. Dorner | |
| Irene M. Dorner | ||
| President and Chief Executive Officer | ||