Disgraced investor Bernie Madoff has pleaded guilty to all of 11 counts of fraud in court. Madoff has been accused of running a pyramid like financial scam scheme in the multitudes of billions of dollars. Prosecutors are still attempting to recover at least $177 billion. It has been reported that for 20 years Madoff has been cheating almost 5,000 investors.

The news comes in as the financial state of the economy is looking at its worst, and the situation truly is terrible for everybody, including those who were not directly related to Madoff’s scam. Why? The revealing light to Madoff’s frauds will do nothing except call into question of trust in the financial sector. Without trust between the financial investor and its clients a large part of the financial market would not exist, because many clients would rather hold their money on their own than surrender them to the untrustworthy investor. Remember, Bernie Madoff was considered one of the most reliable investor in the financial sector. He was given billions in financial assets to invest. It is like having the most trusting person in the room to be revealed as a liar; why would anybody trust anyone anymore?