Thomson, Citigroup reach settlement

NEW YORK (CNNMoney.com) -- Citigroup's former head of wealth management Todd Thomson has settled with the bank following his dismissal in January for lavish spending habits that included high-profile events involving CNBC's Maria Bartiromo, according to a report published Wednesday.

The negotiations centered on the size of Thomson's exit package, as well as restrictions on his ability to hire away Citigroup (down $0.26 to $52.14, Charts) staff, according to the Financial Times.

Thomson, who was once seen as a successor to CEO Chuck Prince, is said to have fallen out of favor with Prince over spending. The company, which competes with Bank of America (down $0.05 to $51.02, Charts), Wachovia (down $0.13 to $54.09, Charts) and Wells Fargo (up $0.04 to $34.45, Charts), has been criticized for its high expenses, the newspaper reported.

Citigroup announced 17,000 layoffs Wednesday. Prince has been under pressure to cut spending by the bank to increase its stock value, the Financial Times reported.

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