J.P. Morgan comes kind of to the rescue of Bear Stearns and buys the house for $2 a share in stock, or about $236 million. Bear Stearns still had a value of $20 billion a year ago.

To make the deal work the Federal Reserve is providing about $30 in financing to Bear Stearns.
The whole deal is apparently about avoiding Bear Stearns to file for bankruptcy, which would have potentially rack havoc to the financial markets.
Will be interesting how the stock market will react to these dealings today. The Euro has already hit an all time high again against the US Dollar.
More details on WSJ and CNN Money.