The New York Times is reporting that JPMorgan Chase & Co. (NYSE: JPM) is in talks with Bear Stearns Companies Inc. (NYSE: BSC) to quintuple its offer for the company -- a move that would raise the deal from $2 per share to $10 per share, providing a very nice return to anyone who bought stock recently -- it closed on Thursday at $5.96.

The new deal that is being discussed is designed to assuage the concerns of Bear Stearns shareholders who have vowed to vote against the deal.

The Times adds that, "The Fed, which must approve any new deal, was balking at the new offer price on Sunday night after several days of frantic, secret negotiations, these people said. As a result, it was still possible the renegotiated deal might be postponed or collapse entirely, said these people, who were granted anonymity because of their confidentiality agreements."

If JPMorgan quintuples its offer to appease disgruntled shareholders in a company that can't survive on its own, it will be an outrage. The Fed has agreed to take on $30 billion worth of Bear Stearns' worst assets. If the company needs to be bailed out by the taxpayers, stockholders who put their money at risk buying shares should not receive anything. Two dollars per share was generous. The sum of $10 per share would not just be a bailout of Bear Stearns -- it would be a handout to people who lost money in the stock market.

If Bear Stearns shareholders think the company can do better in bankruptcy, they should go for it. Vote against the deal and see how that works out. But no taxpayer-subsidized bailout should include over $1 billion in cash for shareholders of a mismanaged company.