WMC won’t go bankrupt because GE is behind them. WMC will just refocus away from subprime but that’s effectively like going out of business. If they were an independent business, they’d be out of business already.
HSBC bought Household Finance for something like $13 billion. They had to write off $11 billion. HSBC won’t go bankrupt but their acquisition of Household is now worthless. That is effectively the same as Household going out of business.
