Madoff

So what are the repercussions to the market of this Madoff character going out?
Is there anything like counterparty risk>? $50 Billion - lot of money - i wonder how this affects the brokerage firms and banks he did business with?
I have 3 clients who have money with him, swore by him, always made money.
One of my clients was getting ready to take some money away from me and give it to him.
He told me just yesterday that he needed the losses in his account with me to offset the gains he had in the Madoff account.
Just what we need for tomorrow, with the GM deal dying.