Laurence Kotlikoff -- SIPC Running a Ponzi Scheme

Economics professor Laurence Kotlikoff is sounding the alarm for massive and ongoing Wall Street fraud. When there is fraud, your brokerage insurance is nearly worthless. Dr. Kotlikoff says, “Every day, we are reading about a big bank being fined billions of dollars. Recently, Bank of America had a $16 billion fine the bank had to pay for selling fraudulent securities. They know they are selling you snake oil and they are getting away with it, and nobody is going to jail. I call Wall Street, at this point, Fraud Street, and one of the biggest rackets is the SIPC (Securities Investor Protection Corporation) brokerage account insurance--it’s not really insurance. A fraud occurs and Wall Street, through SIPC, says we owe you nothing, and they sue you to get paid back. That’s what we call an insurance scam. Wall Street, through SIPC, has been running a massive insurance scam. . . . In many ways, you could say SIPC is running its own Ponzi scheme.”