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Citi CEO Shake-Up ‘Not That Big an Event’: Kelly

Tuesday, 16 Oct 2012 | 12:41 PM ET

The departure of Citigroup CEO Vikram Pandit doesn't mean the company is different than it was 24 hours ago, Brian Kelly of Shelter Harbor Capital said Tuesday on CNBC.

On "Fast Money , " he questioned whether the management shake-up would matter in the near-term.

"Based on the stock price, then you would think that the CEO does need to go, but look at it going, moving forward, " Kelly said. "That's all in the past. Moving forward, is this a material change for Citibank?"

Citi Shake-Up 'Not That Big an Event': Kelly
The departure of Citigroup CEO Vikram Pandit doesn't mean the company is different than it was 24 hours ago, says Brian Kelly of Shelter Harbor Capital.

During Pandit's term as CEO, which began in December 2007, Citigroup stock had declined 89 percent.

In the same period, Bank of America stock was down 79 percent; Morgan Stanley was down 64 percent; Goldman Sachs was down 41 percent, and JPMorgan was down 8 percent.

Kelly also noted the organization's massive size.

"It's a huge aircraft carrier. Now you might have changed the admiral, but are you really going to be able to turn it that quickly? I don't think an awful lot is going to change in the very short term for Citibank, " he said.

"Maybe over the next six months or a year, you start to see a new strategy, but I don't know that just because Vikram Pandit is gone, the whole company's a different company than it was 24 hours ago.

"So for me, it's not that big of an event. I actually think the Apple event is bigger, only because it's 20 percent of the market cap of the Nasdaq ."

Trader disclosure: On Oct. 16, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Brian Kelly is long QQQ; Brian Kelly is long SMH; Brian Kelly is long GLD; Brian Kelly is long SLV; Brian Kelly is long FXP; Brian Kelly is long FXC; Brian Kelly is long JJC; Guy Adami is long C; Guy Adami is long GS; Guy Adami is long INTC; Guy Adami is long AGU; Guy Adami is long MSFT; Guy Adami is long NUE; Guy Adami is long BTU; Michael Murphy is long AAPL; Michael Murphy is long WFC; Michael Murphy is long TGT; Michael Murphy is long UNH; Stephen Weiss is long C; Stephen Weiss is long AIG; Stephen Weiss is long BAC; Stephen Weiss is long HK; Stephen Weiss is long QCOM; Stephen Weiss is short RIO; Stephen Weiss is short AKS.

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