Citigroup (NYSE: C) may need more cash. The head of Dubai International Capital told Reuters that it would take "a lot more money" to rescue Citigroup following investments from Abu Dhabi, Kuwait and Saudi Arabia's Prince Alwaleed.

The statement has the benefit of probably being true. Citi is almost certainly faced with more subprime losses and its derivative holdings of credit cards and munis plus LBO paper could lead the bank to have to write-off billions more in losses from these.

The question is where will the big bank go. Sovereign funds may not have an appetite for putting up more capital. US private equity firms may find the deal too risky. Things may get bad enough that the Fed will have to step in and give Citi a huge loan to keep its balance sheet solid enough for the bank to remain solvent.

The "a lot more money" may come from taxpayers.

Douglas A. McIntyre is an editor at 247wallst.com

Advanced Micro Devices (NYSE: AMD) closed at $6.34 Friday.

Dell (NASDAQ: DELL) said it has stopped selling most consumer systems that use AMD chips on its web site.

Goldman says: "We do not believe AMD's equity is fully reflecting the risk of an AMD bankruptcy."

Abu Dhabi purchased a $622 million dollar stake in AMD on November 16th, 2007.

AMD March option implied volatility of 79 is above its 26-week average of 60 according to Track Data, suggesting larger price movement.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com

It seems that people don't like the idea of sovereign funds owning big pieces of US banks. According to the FT, "over half of the 1,000 people polled by the market research group Strategy One said they 'trusted Citigroup (NYSE: C) less' after its recent decision to tap Middle Eastern and Asian sovereign funds to ease its financial constraints." The number for Merrill Lynch (NYSE:MER) was nearly as high.

The reaction is not against the banks taking the money, but that it came from overseas. That means that while these sovereign investments may have saved the institutions, they could affect that way that customers deal with them. That is, of course, almost impossible to put a number on.

U.S. consumers and businesses will have to get used to a lot more money coming from outside the US to help firms here, especially those in the financial industry. At the end of the day, Merrill and Citigroup probably don't care if their images are dinged if they can keep doing business.

Of course, Merrill could just move its headquarters to Beijing and Citigroup can head to Abu Dhabi.

Douglas A. McIntyre is an editor at 247wallst.com.

An interesting article over at TheStreet.com reports that commercial real estate investment firm, Blumberg Capital Partners, is readying to launch an investment firm, backed by Middle Eastern investors, to invest in U.S. media companies.

TheStreet.com reports that "the fund would target newspapers, as well as Hollywood movie studios, online media outfits, broadcast news, and possibly radio businesses." According to CEO Philip Blumberg, it appears that the fund would raise about $500 million and with the use of leverage, have purchasing power of three times that amount.

I've noticed recently that even indefatigable Jim Cramer has wondered out loud (as he frequently does) why foreign investors haven't stepped up to the plate to start picking up cheap U.S. companies propelled by high oil prices, a weak dollar, and U.S. companies trading at relatively multi-year cheapness.

We've seen Abu Dhabi recently inject $7.5 billion of capital into Citigroup (NYSE: C), make a 5% investment into Sony (NYSE: SNE), and make a similarly-large investment in the Carlyle Group.

This may turn out to be a holiday season only The Grinch could love.

The closely watched Conference Board index of consumer confidence fell to 87.3 in November, its lowest level since Hurricane Katrina in 2005, while house values fell 4.5% in the third quarter, the biggest drop since S&P/Case-Schiller started tracking them in 1988, according to Bloomberg News. Rising foreclosures will sap billions from major metropolitan areas next year, according to a report released today by the National Conference of Mayors.

To put it bluntly, despite the hoopla over Black Friday and Cyber Monday, all indications show that consumers are telling retailers "bah humbug." Does this mean that Santa (AKA Federal Reserve Chairman Ben Bernanke) will bring more holiday rate cuts? At least one fed official says no.

In a speech today in Rochester, NY, Charles Plosser of the Federal Reserve Bank of Philadelphia said that he isn't inclined to seek another rate cut unless growth in 2008 is much weaker than expected. Besides, a weaker economic outlook for next year was considered when the Fed cut rates in October.

The stock market, though, continues to act irrationally.

Today, the Dow Jones industrial average surged 215 points to 12,958.44 after Citigroup Inc. (NYSE:C) got a $7.5 billion investment from a fund tied to the government of Abu Dhabi. That's nice but as Bloomberg News points out, that investment came with a steep price.

"Citigroup Inc., the biggest U.S. bank, is paying a "junk bond'' rate to uphold Chairman Robert Rubin's pledge to preserve the dividend and weather this year's mortgage-market decline," the news service says. "The 11 percent interest rate on $7.5 billion of convertible shares that Citigroup sold to the Abu Dhabi Investment Authority is almost double the rate it offers bond investors."

This proves that there is no so such thing as a free lunch.

In a move that was long rumored, Citigroup Inc. (NYSE: C) is getting a $7.5 billion cash infusion from the investment arm of the government of Abu Dhabi, according to the Wall Street Journal. (subscription required)

"The investment by the Abu Dhabi Investment Authority will help rebuild Citigroup's capital levels, which have been eroded by a credit crunch that began in August. Citigroup Chief Executive Officer and Chairman Charles Prince resigned earlier this month after the bank, which had already written off billions of dollars, was facing as much as $11 billion more in losses," the paper said.

ADIA will become one of Citigroup's largest shareholders with a stake greater than Saudi Prince Alwaleed bin Talal, reportedly the company's largest individual shareholder, people familiar with the matter told The Journal.

News of the investment should give a boost to Citigroup's shares which have tanked about 45% this year and perhaps other financial stocks including Merrill Lynch & Co. (NYSE: MER) and Bear Stearns Cos. (NYSE: BSC), which are down as much as Citigroup

That impact, though, may be short-lived because there may be another shoe or two still left to drop in continuing saga of the subprime mortgage meltdown.