The cheerful sound of bagpipes floated over from the jubilant Saint Patrick's Day parade a block away on Fifth Avenue. But for the beleaguered employees of Bear Stearns, they may just as well have been playing a funeral dirge.
    
Outside company headquarters at Madison Avenue and 46th Street, grim-faced employees stood in small groups smoking, while others hustled in and out of the 47-story building carrying takeout or typing on their BlackBerries. The somber sentiment of the men and women in suits couldn't have been more of a contrast to the cheerful—and sometimes drunk—green-shirted parade watchers clogging the sidewalks just a few feet away.

'We're taking it one day at a time," said one employee in client services who was on his cigarette break, tears welling up in his eyes. "What can you do?"

Few employees would give their names or even say what department they worked for. But their emotions were apparent in their words and body language.

"It’s as bad as it can get," said one employee in his 40s who typed away on his BlackBerry as he prepared to enter the building. "The mood is shitty."

One employee, a waiter in the executive dining room, said that very few executives showed up today and that he'd been told they were mostly in emergency meetings. "Usually, there are about 100 people in the dining room. Today there were probably about 30," the waiter said.  
    
Massive layoffs of Bear's 14,153 employees are expected following the likely merger with J.P. Morgan, in everything from administrative to investment-banking services. Some current employees acknowledged that they are already putting out feelers for new jobs.
     
In addition to the pain from likely job loss, the company's workers are also reeling from a massive blow to their own stock portfolios, since many received part of their compensation in stock. Of all the major investment banks, Bear Stearns probably encouraged employee ownership the most; according to Bear's website, employees own an estimated one-third of the outstanding company stock. The value of those shares has plunged more than $5 billion in the last year.

"I lost my ass; hundreds of thousands of dollars were wiped out,” said one former high-producing broker for the company who still holds large amounts of Bear Stearns stock. "I got hurt big-time."

Across the street from Bear Stearns' headquarters, at Maggie's Place, celebrants drank in honor of Saint Patrick's Day. But not all were oblivious to the drama at the investment bank.
    
"My portfolio just took a huge hit. I owned a lot of Bear Stearns," said John Grogan, a reveler in a suit and tie who stood chugging a beer. "But yesterday is history, and tomorrow is another day. That’s why we have Saint Patrick's Day—to celebrate today."

Additional reporting by Kit Roane.