I doubt it sends the university into bankruptcy, but it certainly sets them back a decade or so. These universities have monetary resources we cannot even imagine, so they can cover the financial penalties.
The real damage is to their reputation and credibility. This stigma is going to be there for a long time, they have a long road ahead to completely rebuild their image and culture. I described a little bit of this in an earlier post, but their new administration is going to have to embrace the concept of transparency and openness because they've lost the trust of the public, they can't have that culture of running a tight ship, "trust us, we're doing it the right way" they've had for the last 6 decades. Administrators at just about every level are going to have to be replaced, basically anybody who's been there more than a few years, and replaced by somebody who didn't come from Penn State. I don't think they need the "death penalty", they can rebuild themselves, it's just going to be a long, hard road to get there.