Intel Corp (INTC)

[walbert]

The people at investment banks are super smart and super well paid.

Hmmm. Really? Then why is it we hear with alarming regularity about one of them getting out of control and losing billions of dollars. And why do the big Wall Street firms already have billions set up in liability funds for fines for criminal and ethical violations? If they are so smart, then why can't they make money the old-fashioned way - by working for it instead of screwing someone out of it? And if they are so smart why do they get caught so often? Intelligence doesn't seem to their leading characteristic. The complete lack of moral and ethical fiber seems to be their defining trait.

But, yeah - they are super well paid.

They don't keep their jobs unless they help the firm make money. Covello serves some useful purpose. You can speculate on what that purpose is given the clearly erroneous estimates he has made and which you documented. That is - How does his employer make money from clearly wrong prognostications?

Well, the obvious answer here is that they trade against their customers and in opposition to the advice that they are giving their customers. If there is another explanation I have yet to hear it.