Citigroup hire reveals shift to bankers?

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Are bankers poised to regain their influence at top Wall Street banks? Perhaps. One sign of the times may be the hiring of energy banker Stephen Trauber by Citigroup (NYSE: C). He was an esteemed banker for UBS in Houston before being lured away by a huge pay package extended by Citigroup.

Various media reports have pegged his compensation at $30 million over three years. But he apparently only has a one-year contract and "verbal" agreements for the next two years. The bank calls the reports "wildly speculative" and would not confirm that Trauber will be paid at least $9 million for 2010. But it seems clear that he will make a whole lot of money at Citi.

This may signal a subtle shift on Wall Street, away from traders as the big-money rainmakers and back toward investment bankers, who are sensing a deal spurt ahead. We noted recently that as layoffs mount, traders will likely fare worse than bankers. It would be unwise to read too much into this. But  the conditions do seem ripe for traditional investment bankers to reassert themselves, if only temporarily.

For more:
- here's a Huffington Post article
- UBS seems to be losing its most talented bankers

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