* Trauber says 10 senior bankers moving to Citi (Adds details from Citi, Trauber)
By Michael Erman
NEW YORK (Reuters) - UBS's global headof energy investment banking and a number of other investmentbankers in the firm's energy group have left for Citigroup, the banks said Wednesday.
Stephen Trauber, as well as managing directors MichaelJamieson, Sam Pitts and Jerry Schretter, are all making themove to Citigroup.
Citi said that Trauber will serve as co-head of globalenergy, power and chemicals investment banking group alongsidecurrent co-heads Peter Tague and Andrew Safran.
Trauber said in a phone interview that a total of 10 seniorbankers were moving to Citi and would start after 30 to 60 daysof "gardening leave."
This is the second departure of a large group of bankersfrom UBS's investment banking business in the last two years.The firm lost a high-profile team of health-care bankers toJefferies Group Inc in 2009, spurring a lawsuit fromUBS.
"UBS is firmly committed to serving its energy clients andremaining very active in this sector. We will move quickly tomaintain our leadership in this practice area," UBS spokesmanDoug Morris said.
Over the past year, deals that Trauber and the UBS energyteam have worked on include advising Smith International on its$11.3 billion sale to Schlumberger and India's RelianceIndustries on its $1.35 billion purchase of a stakein Pioneer Natural Resources' Eagle Ford shaleacreage.
Trauber said he was saddened by leaving UBS, but said thathis team wanted to move because, among other reasons, Citicould provide them with more certainty around pay.
UBS overhauled its compensation structure at the end of2008 and told staff last year it would further reform its payby hiking fixed salaries and matching bonuses to sustainableperformance, according to an internal memo.
Trauber said the team also liked Citi's commitment toinvestment banking and the ability to use the bank's balancesheet to support clients.
"With the balance sheet of Citibank and the clients wehave, we thought it was a very strong combination," Traubersaid.
Trauber said that UBS had made a very attractive offer tokeep him at the firm. Ultimately, he said, he wanted to keephis team together, and they wanted to go to Citibank.
"UBS has been a great place for me to work for the lastseven years," Trauber said. "I truly am saddened that I'm notgoing to finish my career there."
Energy has been among the hottest sectors for mergers andacquisitions in 2010. The move by the UBS bankers to Citigroupfollows several high-profile energy departures at Deutsche Bank earlier this summer. (Additional reporting by Helen Kearney; Editing by Lisa VonAhn, Gunna Dickson and Bernard Orr)