Quote from DeepFried:
And a somewhat comforting detail:
"People close to the situation said Citi had always planned to follow up its issuance of preferred shares with a sale of common stock to satisfy US rules requiring banks to have the bulk of their capital in common equity."
http://us.ft.com/ftgateway/superpage.ft?news_id=fto042920082107591498&page=2
Much of the upset here comes down to very poor communication on the part of Citigroup.