Updated from 8:01 a.m. EDT

Citigroup ( C) shook up its management ranks on Friday, moving CFO Gary Crittenden to head a new unit housing unwanted assets and former global banking head Edward 'Ned' Kelly into Crittenden's old role.

Citi announced in January it was splitting its businesses into two firms -- Citicorp, encompassing the bank's core assets, and Citi Holdings, which will house mostly unwanted assets and units it is looking to unload. Citi shares closed up 2 cents to $2.62.

"Gary and Ned will build on our early accomplishments and help to meet our strategic objectives at Citicorp and Citi Holdings," Citi CEO Vikram Pandit said in a statement on Friday.

Analyst Richard Bove questioned the decision.

"Edward Kelly has a superb reputation, but there is nothing in his background that suggests that he is qualified for this job," Bove, an analyst at Rochdale Securities, writes in a note. "Why is Mr. Kelly in position? The word 'cronyism' comes to mind."

Pandit became CEO in December 2007 after ex-chairman and CEO Charles Prince was forced out over the billions in losses the company took related to securities writedowns as the housing and financial meltdown rolled on. Pandit has been gradually hiring and appointing his own team of leaders, including Kelly.

"If a new CFO had to be found, I would have been more comforted if one with financial skills in running this position were selected," Bove writes.

Some, including Bove, say it is a possibility that Kelly could eventually replace Pandit.

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