reports that JPMorgan Chase & Co. (NYSE: JPM) has closed a deal to acquire The Bear Stearns Companies (NYSE: BSC) for $2 a share -- 99% below its all-time high of $167 a share in February. On the face of it, this sounds like a low price -- $236 million. But the Fed is kicking in $30 billion to fund Bear's "less liquid assets." Taking into account the $1 billion value of its headquarters, this deal values Bear at negative $764 million.

And then there's the question of risk. According to JPMorgan, "Bear Stearns' clients and counterparties should feel secure that JPMorgan is guaranteeing Bear Stearns' counterparty risk. We welcome their clients, counterparties and employees to our firm, and we are glad to be their partner." I guess this means that JPMorgan's biggest "price" is the counterparty risk risk it's assuming.

I guess that explains why JPMorgan is paying $1.76 billion less than the $2 billion figure being floated earlier this evening. Nevertheless, I think the markets will like the fact that JPMorgan and the Fed have decided not to let Bear's blood drift around in those shark invested waters for more than a few days.

Peter Cohan is President of Peter S. Cohan & Associates. He also teaches management at Babson College and edits The Cohan Letter. He has no financial interest in the securities mentioned.