CIT said late Wednesday that negotiations with regulators about a possible rescue had broken off after days of round-the-clock talks, raising expectations that the New York-based company will file for bankruptcy. The move marked a defining moment for the Obama administration and showed it’s drawing a line in the sand on federal rescues for troubled financial firms.

Well, that unraveled quickly. Speculation is for an immediate bankruptcy. This is interesting. There doesn’t actually appear to be a reason for an immediate bankruptcy (though an eventual bankruptcy seems certain). It’s not like they have a giant payment due tomorrow. Why delay the inevitable? Right?

I’m not sure I buy the argument that it is going to be a non-event. This could be due to my general stock market pessimism, though. Is this going to be balanced by the announcement of a new harebrained scheme to provide credit to small businesses?

The most important question: Who will provide financing for Dunkin’ Donuts franchisees? They get mentioned in almost every single CIT article.