Finance
After SVB’s Failure, Its Attempted Rescuer Charged $285 Million in Fees
- US rules let home-loan banks recoup costs for early repayment
- SVB fees were highest paid for failed bank since at least 2006
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US banking regulators confronted an unusually large penalty when they seized Silicon Valley Bank last year: $285 million in fees to prematurely wind down emergency financing from the Federal Home Loan Bank system.
That was the price tag to retire billions in financing that the firm obtained in a last-ditch attempt to survive a run on deposits, according to an internal Federal Deposit Insurance Corp. document obtained by Bloomberg.