JPMorgan Acts to Buy Ailing Bear Stearns at Huge Discount. (NY Times)

Bear Stearns, facing collapse because of the mortgage crisis, agreed Sunday evening to be bought by JPMorgan Chase for a bargain-basement price of less than $250 million, the two companies announced.

$250 million? The entire company is worth the same as Alex Rodridguez?

Holy shit. We’re fucked.

UPDATE: More here.

Perhaps moreso than any other major investment securities firm, Bear promoted a culture of circled wagons, an us-against-the world camaraderie. As part of that effort, the investment bank paid a significant portion of its employees’ compensation in stock. On its Web site, Bear says that its employees own about one-third of the firm. That translates into about a $5.23 billion loss on paper for Bear’s employees over the last year, as the firm’s stock plunged 79.4 percent.

Bear also states on its Web site that non-management directors are required to hold at least 500 shares of common stock or equivalents (which include vested options and restricted stock), while executive officers must own at least 5,000 shares.