Sketch, it's difficult for me to even begin to understand the significance and, more importantly, the meaning of having "91 trillion dollars in derivatives." I have always figured many of those positions must counter balance others. If not, the market value of JPM could be wiped out with only a small movement of those derivative positions.

I wouldn't doubt for a moment, though, that JPM's primary reason for this move is as you say, as opposed to JPM's conclusion that this is such a good deal at this time (under this deal, I think JPM pays about $20-22 per share, a further haircut to the $30 or so where it closed on Friday) . I guess many big clients of Bear Stearns will be happy to hear of this development, as I'm sure many have accounts several times the amount of the SIPC insurance (half million, I think)and any umbrella policies BS might have.

This may have a positive effect on the market (maybe even for the whole day??? LOL), allowing more people to pull money out of their equity mutual funds on an up day. One thing's for certain, the volatility will be as strong as ever going forward.