Sovereign Bank: Shares rebound and new CEO

[0:17] ..." taking place today remind somewhat. The disruptions that took place here in New England in 1990. Over called back then. We had a terrific -- downturn in the economy in New England to thanks. We're considered to be in trouble. With the beach -- bank of Boston fleet. Today it's a different. Different set"...

[0:58] ..." to pay it back and those banks -- wondered but fortunately in New England. In the case of sovereign. We did not make those kinds of loans. So sovereign did not make a sub prime mortgages"...

[1:29] ..." What sort of effect to the bank. Has the Freddie and Fannie investment had."...

[1:35] ..." we had. It was well known that we investment in Freddie and Fannie. In the preferred stock arena. And we decided. That they had taken some of the charge of that. Had raised a lot"...

[2:13] ..." Looking at sovereign share price yesterday. Shares that sovereign were off. Today they're bouncing back rapidly there's there's an insecurity in the market."...

[2:54] ..." had. They just decided they didn't want to -- banks in the United States at all -- these these shareholders. Sold shares yesterday that the very same time that the market was so terribly weak. What"...

[0:16]" The disruptions that are taking place today remind somewhat. The disruptions that took place here in New England in 1990. Over called back then. We had a terrific -- downturn in the economy in New England to thanks. We're considered to be in trouble. With the beach -- bank of Boston fleet. Today it's a different. Different set of issues but the same result that is that. Some banks that have overextended themselves in the in in and have. Bad loans on their books some problems and -- mortgages that were made. Two people could not afford to pay it back and those banks -- wondered but fortunately in New England. In the case of sovereign. We did not make those kinds of loans. So sovereign did not make a sub prime mortgages did we did. We did not make. These kinds of mortgages that. Have gotten others into big trouble -- some alternative. An adjustable rate mortgages were. People didn't have to pay back interest repressive but discarded had to do it to principle we did not make those kinds of loans."

[1:29]" What sort of effect to the bank. Has the Freddie and Fannie investment had."

[1:35]" We we had. It was well known that we investment in Freddie and Fannie. In the preferred stock arena. And we decided. That they had taken some of the charge of that. Had raised a lot of capital and we're able to take the remaining charge in news small portion of the capital that we had raced to take that charge. So there's nothing in today's news having -- to do with Freddie incentive those were those are items that. Have been addressed to in some instances months and months ago and and and the last pieces that addressed to about two months ago."

[2:13]" Looking at sovereign share price yesterday. Shares that sovereign were off. Today they're bouncing back rapidly there's there's an insecurity in the market."

[2:24]" Yes I would take yesterday two things happened one is of course the financial bailout plan and I did not pass congress in the entire market was often historic. 770. Points. Our shares were affected by that as were many other banks on top of that as has been reported in the press. A couple of shareholders who had. Lost money on some of the other banks that I mentioned to would run its big troubles because of the -- about -- that they had. They just decided they didn't want to -- banks in the United States at all -- these these shareholders. Sold shares yesterday that the very same time that the market was so terribly weak. What happened today of course is that a number of investment analysts have come out with recommendations. Four sovereign. And they do that for. Very basic reasons one is that we have strong capital and they point to the fact that we have strong liquidity. And lastly that we don't have the kind of assets over the banks had so the stock has bounced back as you said. During this time of uncertainty. The good news from our standpoint is that. They are. Associates here at the bank understand the bank. Our depositors. Have been very strong today is in staying. The course in understanding. They've used the banks start coming back understand the point that they respect a a part of the identical part of this community of one that is going to be able to survive. The very typical period that would sort."