From the opinion pages of the Wall Street Journal, this is Potomac Watch.

First Republic Inc. is seized by regulators and much of its operations sold to JP Morgan

Chase as the Supreme Court takes a case that could end Chevron deference to administrative

agencies.

Welcome, Kyle Peterson with the Wall Street Journal.

We are joined today by my colleagues, columnists Alicia Finley and Kim Strassel.

This Republic based in San Francisco lost about $100 billion in deposits.

During a run in March, the journal says that was after the collapse of Silicon Valley Bank.

First Republic was then helped out by the Too Big to Fail crowd, which deposited $30

billion in an effort to restore confidence.

But nevertheless, early Monday, first Republic was seized.

This is the second largest bank failure in US history.

Let's start with a clip of Jamie Diamond on a call with reporters explaining how the

first Republic deal was done.

No crystal ball is perfect, but yes, I think the banking system is very stable.

A lot of the deposits out there was because of the quantity of tightening.

It wasn't because of these people having runs.

There are only so many banks outside this way.

I think this is, there may be another smaller one, but this pretty much resolves them all.

But this part of the crisis is over.

We support and want community banks and regional banks.

You need big banks too to do the kind of business we do around the world for our larger clients.

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