That just gives another avenue for former vets too. Some would probably become pirates, sadly enough. And while Confed may be trying to stamp out Mercs in general, once the Black Lance made their little show, and Confed called for a complete revamp of their military/side projects, that would keep them busy enough to not put forth their greatest efforts to stamp out any mercenary force. (That's not to say the military just stopped all their actions, but even if a Senate committee was formed, to let the Senate get on with their business, once word of this got to the generally public, stopping mercenaries would be a lower priority to getting this cleared so that each person can convince his constituents to vote them back in.)
While it is almost assured that after they're done cleaning house, they would probably start back up, during the time period between the beginning and end of the investigations, Merchants/Merc guilds would have the opportunity to both A) Make a fair amount of money, and B) possibly come up with some heavier political pressure. (After all, more money means more leverage.)