Yes & No. JP is buying Bear with its own cash. It's only $230-odd million. The Fed allowed an unusual transaction in which $30B of Bear's toxic assets were put up as collateral for Fed loans in order to keep its (Bear's) operations and trades going. The Fed took some of the pressure off of Bear's balance sheet to make it more attractive to JP and reduce the damage to JP's balance sheet once the entities merge.
Bear: "Mein Leiben!"
Fed: "Holy sh*t, this can't happen! You, JP! You hold a lot of Bear's paper already. We need your help, and we'll sweeten the deal, ok?"
JP: "I'm gonna make you an offer you can't possibly refuse..."