WASHINGTON – Sen. Phil Gramm said Monday he will become an investment banker and vice chairman of UBS Warburg when he ends his 24-year career in the Senate at the end of this session.
Gramm, at a news conference, said he had reached a deal with UBS Warburg, one of the world's largest investment banks, at the end of last week. He said he will also be part of a board that sets policy.
"I'm excited about the prospect in my next career of actually being involved in job creation and economic growth. It will provide me with the opportunity to practice what I have always preached," said Gramm, an economics professor before he entered politics.
The Texas Republican, 60, said the full-time job would involve work in New York and around the world but that he would live in his home near San Antonio where he is building a barn and a guest house.
Gramm, formerly chairman of the Senate Banking Committee, said he believed UBS Warburg was "hiring me for what I know and not who I know. I hope both are valuable."
He said he had told President Bush that he planned to enter the private sector after his term ends on Jan. 3, and that the administration had not approached him about a government position. He also said he was not disappointed that earlier speculation that he would be considered as the next president at Texas A&M did not materialize, although he did hope to return to the academic community one day.
Asked about his compensation at UBS Warburg, he said, "it's a little better than I'm doing here." Senators receive a salary of $150,000 a year.
John P. Costas, chairman and CEO of UBS Warburg, said in a statement that Gramm "has been at the center of every debate on financial matters for the past quarter century." He said the company was committed to becoming a top five player in investment banking in the United States and "having expertise such as that of Sen. Gramm will help us achieve our goal."
In addition to its investment banking, UBS Warburg is part of financial services firm with more than 70,000 employees in more than 40 countries.