Bailout, pure and simple:
If you're puzzled about today's Fed/JPMorgan/Bear action, here's Barry Ritholtz:
10:33: If you are wondering WTF a non-recourse, back-to-back financing is, pull up a chair:Liveblogging
JPM gets to go the the Discount Window and borrow all the greenbacks they want; Then they loan that to Bear. In the event that Bear defaults, the NY Fed cannot go back to recover from JPM -- hence, non-recourse.
(!) the Bear meltdown.