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The other $1 billion of stock will be repurchased in the next 12 months, Genzyme said.
Now, most auction-rate securities held by retail investors will be repurchased.
Primarily, they use short sales, an arrangement in which a stock borrowed from a broker is sold with the understanding that it will be repurchased later.
Shares will be repurchased in the open market and funded through cash, cash equivalents and available-for-sale securities, and are primarily intended to help offset dilution from stock-based employee compensation plans.
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Short-selling lets investors sell borrowed shares in the hope that their price will fall and that they could then be repurchased more cheaply, allowing the investors to pocket the difference.
Joseph M. Evangelisti, a spokesman for JPMorgan, declined to discuss the bank's mortgage liability exposure in depth, saying only: "We stand by our obligations under the agreements in question and we will honor our obligation to repurchase any loan that should be repurchased under the terms of those agreements".
The number of shares to be repurchased was not disclosed.
It'll additionally be repurchasing $507 million in common stock.
The actual amount VW will spend will depend on how many vehicles are repurchased.
A proposed $500m share buyback will now stop, after $370m was repurchased.
Further, Treasury will begin publishing additional information on each warrant that is repurchased, including a bank's initial and subsequent determinations of fair market value, if applicable.
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