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JPMorgan Chase Buys Bear Stearns for $240 Million

That's $2 a share. On Friday it closed at $30 a share after losing half its value that day. What's more, the Federal Reserve is acting a backstop for J.P. Morgan by guaranteeing much of Bear Stearns toxic mortgage-related debt.

It could well be a Black Monday on Wall Street tomorrow. This transaction indicates that the market values U.S. mortgage-backed securities as next to worthless, and Bears Stearns is not the only company holding such paper. The house of cards has fallen.