The problem of 'of'

"of blasting" follows "the luxury of". It is a joining together of two parallel sentences.

We can't afford the luxury of giving up on the banking industry.
We can't afford the luxury of blasting it to smithereens.

Because the second sentence follows immediately the first one, the two sentences can be joined together and become the sentence in question.

Both "giving" and "blasting" are gerunds (verbal nouns). "Giving up on the banking industry" and "blasting it to smithereens" are noun phrases and objects of "the luxury of".

The second noun phrase is a follow-up of the first one and serves to emphasize the seriousness of the action to be taken.

An Attempt To Answer:-
We can't afford----s+v
The functioning with introductory words (of):-
of (giving up on-----)adv.cl modified afford
of (blasting it to-----)adv.cl.modified afford too.,with concepts of conditions here it=banking industry,
hence of blasting=of giving up,
a parallelism use of balanced words,expressions.