09:40 AM EDT, 03/12/2024 (MT Newswires) -- Silicon Valley Bank (SVB) last year paid $285 million in fees to wind down financing from the Federal Home Loan Bank system after its collapse, Bloomberg News reported Tuesday, citing an internal government document.

The fee, incurred as part of the failed effort to save the bank, was the largest of its kind since before the 2008 financial crisis, Bloomberg said.

Federal Home Loan Banks are a system of 11 government-backed lending institutions that provide banks with liquidity to finance mortgages.

San Francisco's Federal Home Loan Bank lent Silicon Valley Bank $30 billion to counter a bank run last year. After it collapsed, a bridge bank that took over its assets decided to pay the money back early, along with $285 million in early repayment fines, Bloomberg reported.

The Federal Home Loan Bank of San Francisco did not immediately reply to MT Newswires' request for comment.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)