The Fed didn't cut the target federal funds rate. That'll probably be cut by at least 75 basis points in the Fed's regularly scheduled meeting tomorrow. The Fed also approved of JP Morgan Chase's buyout of Bear Stearns. As this CNN article describes, "the all-stock deal values Bear Stearns at $236 million, or just $2 a share. The company's stock had closed at $30 on Friday."
As this Kiplinger article warns, this Bear Stearns collapse may be just the tip of the iceberg. I'm still keeping faith in the FDIC and NCUA. They have a long track record (see post), and I believe the government is going to do whatever it takes to ensure they meet their insurance obligations. Just make sure you stay below the insurance limits.