How can the stock of Citigroup (C) be so strong still, stronger than all of the other bank stocks that have reported, including JPMorgan Chase (JPM)? Let me give you a couple of theories, theories that make both Pandit and the board look good.

First, there is no doubt that the last quarter that Pandit delivered put the place on firm footing. To be the only bank that had honest-to-Betsy net interest margin growth is pretty spectacular. To be the bank that owns the emerging markets at a time when suddenly everyone is budging about those emerging markets again is extraordinary. The infrastructure is there, and the growth path is obvious.

But second, Pandit, despite an excellent presentation on Capitol Hill during the bad days, is not an inspirational figure. He's a cerebral former hedge fund manager.

Worse, he's considered part and parcel with the previous regime even as that's an unfair rap. The regulators want to see someone new.

I know that sounds dopey. But anyone who has ever been in front of regulators knows that when you challenge them or cross them, they want a fresh face in front of them next time.

In other words, the best thing that new CEO Michael Corbat has going for him is he's not Vikram Pandit. He can submit the new capital plan, and the regulators can say, "The board of directors listened, and they picked a new guy, which is what we wanted."

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Now, how the board did it was classless. You are obviously constructively firing a guy if you accelerate a transition to a new CEO. People have pride, particularly after a great quarter like the one just reported.

But what's been most amazing about all of this hoopla is that the great quarter was clearly, totally and completely irrelevant to the board. It's as if it didn't happen at all.

Of course, though, if you are a shareholder -- and remember, the shareholders already expressed their ire at Pandit -- then you are thrilled that the quarter was good and happy to have someone new, even as it seems unfair that when a CEO finally gets it right, he gets constructively canned.

What matters in the end is pretty simple: The company's got new management because the old management wasn't allowed to cross into the promised land even as it led the team through the desert in a tortured and roundabout way.

That means it can go higher with the government no longer standing in the way of a buyback and a real dividend, both of which are badly needed if the stock can get back to $5 -- oops! -- I meant $50.

Jim Cramer is a co-founder of TheStreet and contributes daily market commentary to the financial news network's sites. Follow his trades for Action Alerts PLUS, which Cramer co-manages as a charitable trust and is long JPM.

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