Hedge fund Citadel hires another JP Morgan banker

BOSTON, May 28 (Reuters) - Citadel Investment Group said on Wednesday it had hired another JP Morgan Chase & Co (JPM.N) banker -- the third in three months -- to oversee securitized products.

Bill King will join the $20 billion hedge fund group as a senior managing director and head of Securitized Products, Citadel said in a statement.

King joined JP Morgan Chase eight years ago and was the company's head of Pass Through Trading, head of Mortgage Trading, and co-head of U.S. Securitized Products before being promoted to global co-head of Securitized Products.

In April, Citadel said it had hired former JP Morgan banker Derek Kaufman to run its U.S. fixed-income business. In March, it said Patrik Edsparr, former head of fixed income at JPMorgan, would join this summer to run the hedge fund's European division.

Hedge funds have long been attractive places to work for former bankers because the pay is often better; hedge funds managers earn hefty compensation fees on top of management fees.

The pull may be even stronger now that many hedge funds are considered to be financially sounder than many large banks that face problems from the credit crisis. (Reporting by Svea Herbst-Bayliss; editing by John Wallace)