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All look like total fools if this thing comes to light. Don't think for a minute that Carcetti and Rawls won't want to keep it quiet - not sure if Daniels will fall on his sword - the real punishment for Freamon and McNulty would not be termination but to stay on the force and work the evidence room and/or be exiled to the Marine/harbor unit.
Greggs may find that "no good deed goes unpunished" if she's not willing to play ball about this. Same for Gus at the Sun.
Meanwhile, as Clay Davis knows, lawyers like Levy make $$ regardless.