The preferred shares have a liquidation preference of $1,000 apiece.
Porsche preferred shares slid 4.6 percent to 64.73 euros.
VW preferred shares gained 3.2 percent to 127.70 euros.
Banks' share prices would, of course, remain uncertain while preferred shares were outstanding.
He also bought perpetual preferred shares and warrants of General Electric Co. two weeks later.
The British government converted its preferred shares in RBS into ordinary shares on Monday because the former required such hefty dividend payouts.
Citi is also looking at adding to its plan to convert $52bn of preferred shares held by the government and other investors by including trust preferred shares, a hybrid of debt and equity.
Sunday's agreement gives ING the right to Buy back the preferred shares at 150% of the issue price.
Because of Treasury backing, the bulk of Fannie’s and Freddie’s debt (though not their preferred shares) will settle at par or close to it.
Mr. Buffett used his vast cash stockpile to scoop up bargains, including a $5 billion investment in Goldman Sachs Group preferred shares.
I favor the Warren Buffett approach: preferred shares that pay interest and warrants to acquire an equity stake at an attractive price.
Banks that sell preferred shares to the government likely won't be able to pay a dividend until 2012 at the earliest, according to estimates Wednesday by investment firm Collins Stewart.
Later, talks slowed because bank executives were concerned about the 8% interest rate the government wanted on new preferred shares it would take in bank of America, these people say.
