Citigroup Inc named Chief Financial Officer Gary Crittenden as chairman of troubled banking unit Citi Holdings on Friday, and elevated Edward Kelly to replace him as CFO.

Crittenden will work with Mike Corbat, the interim chief executive of Citi Holdings, to sell or wind down some $850 billion in assets in the unit, including the Smith Barney brokerage, the Primerica insurance unit and $300.8 billion in troubled assets.

The unit is separate from Citicorp, whose $1.1 trillion in assets includes businesses that Citigroup wants to keep, such as retail and investment banking operations.

Chief Executive Vikram Pandit is trying to restore the third-largest U.S. bank to health after $37.5 billion in losses over five quarters, largely from exposure to housing-related and complex debt that is now part of Citi Holdings.

Although the New York-based bank treats Citicorp and Citi Holdings as separate operations, both are still included in Citigroup's overall results.

Pandit last week said Citigroup made money in January and February, surprising analysts.

Crittenden joined Citigroup as CFO in March 2007, after holding the same position at American Express Co .

Kelly, who is known as Ned, previously oversaw global banking, Citi Private Bank and Citi Alternative Investments. He joined the company in February 2008 from private equity firm Carlyle Group , where he was managing director.

(Reporting by Jonathan Stempel; editing by Jeffrey Benkoe)