Sovereign Bank
Encyclopedia
Sovereign Bank is a wholly owned subsidiary of the Spanish
Grupo Santander
. Based in Boston
, Massachusetts
, the bank—whose principal market is in the Northeastern United States—has more than $77 billion in assets, operates 723 retail banking
offices, over 2,300 ATMs
(including 1,100 in CVS pharmacies throughout the Northeast
) and employs approximately 8,500 people. Sovereign offers an array of financial services and products including retail banking, mortgages, corporate banking, cash management
, capital markets, trust and wealth management, and insurance
.
in 1999 in support of newly acquired Trenton Savings Bank (formerly TSFS) and other New Jersey branches for a ten year term. In following years, the bank also named the Sovereign Center
Arena and Sovereign Performing Arts Center in Reading, Pennsylvania, and Sovereign Bank Stadium
in York
, Pennsylvania. In 2000, it bought 285 New England branches from the newly-merged FleetBoston Financial
.
On June 1 2006, Sovereign Bank purchased Independence Community Bank Corp. of Brooklyn, New York, for US$3.6 billion in cash. Sovereign completed the transition process of Independence and S.I. Bank & Trust customers on September 9 2006. Sovereign financed this merger by selling a 20% stake in the bank to Spain's Banco Santander Central Hispano.
In June 2006, Banco Santander purchased almost 20% of Sovereign Bank for US$2.4 billion. As Banco Santander owned 25% of Sovereign, it had the right to buy the bank for $40 per share for one year beginning in the middle of 2008.
On October 13, 2008, Banco Santander agreed to purchase the remainder of Sovereign for US$1.9 billion (1.4 billion euros). Sovereign Bank had been severely affected by losses related to auto loans and stock in Fannie Mae and Freddie Mac. On January 30, 2009, Banco Santander completed its acquisition of Sovereign Bank, for about $2.51 per share.
In August 2011, the bank announced its plans to formally relocate its headquarters from Wyomissing, Pennsylvania
to Boston
, Massachusetts
where its top executives have already been located for the past few years.
In late September 2011, the bank announced that it will officially change its name to "Santander" as part of its parent company's goal to create a global brand. It was reported that the name change could take place as early as 2012.
Spain
Spain , officially the Kingdom of Spain languages]] under the European Charter for Regional or Minority Languages. In each of these, Spain's official name is as follows:;;;;;;), is a country and member state of the European Union located in southwestern Europe on the Iberian Peninsula...
Grupo Santander
Grupo Santander
The Santander Group is a banking group centered on Banco Santander, S.A., the largest bank in the Eurozone and one of the largest banks in the world in terms of market capitalisation. According to Forbes Magazine Global 2000, it is the 13th largest public company in the world...
. Based in Boston
Boston
Boston is the capital of and largest city in Massachusetts, and is one of the oldest cities in the United States. The largest city in New England, Boston is regarded as the unofficial "Capital of New England" for its economic and cultural impact on the entire New England region. The city proper had...
, Massachusetts
Massachusetts
The Commonwealth of Massachusetts is a state in the New England region of the northeastern United States of America. It is bordered by Rhode Island and Connecticut to the south, New York to the west, and Vermont and New Hampshire to the north; at its east lies the Atlantic Ocean. As of the 2010...
, the bank—whose principal market is in the Northeastern United States—has more than $77 billion in assets, operates 723 retail banking
Retail banking
Retail banking is banking in which banking institutions execute transactions directly with consumers, rather than corporations or other banks. Services offered include: savings and transactional accounts, mortgages, personal loans, debit cards, credit cards, and so forth.-Types of...
offices, over 2,300 ATMs
Automated teller machine
An automated teller machine or automatic teller machine, also known as a Cashpoint , cash machine or sometimes a hole in the wall in British English, is a computerised telecommunications device that provides the clients of a financial institution with access to financial transactions in a public...
(including 1,100 in CVS pharmacies throughout the Northeast
Northeastern United States
The Northeastern United States is a region of the United States as defined by the United States Census Bureau.-Composition:The region comprises nine states: the New England states of Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island and Vermont; and the Mid-Atlantic states of New...
) and employs approximately 8,500 people. Sovereign offers an array of financial services and products including retail banking, mortgages, corporate banking, cash management
Cash management
In United States banking, cash management, or treasury management, is a marketing term for certain services offered primarily to larger business customers...
, capital markets, trust and wealth management, and insurance
Insurance
In law and economics, insurance is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss. Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for payment. An insurer is a company selling the...
.
History
Sovereign bought the naming rights to Mercer County's new arenaSovereign Bank Arena
The Sun National Bank Center is a $53 million, 8,500 seat arena in Trenton, New Jersey, home to the Trenton Titans of the ECHL and other special events. In 2011 it will be home to the Trenton Steel of the Southern Indoor Football League...
in 1999 in support of newly acquired Trenton Savings Bank (formerly TSFS) and other New Jersey branches for a ten year term. In following years, the bank also named the Sovereign Center
Sovereign Center
Sovereign Center is a 7,083-seat multi-purpose arena, in Reading, Pennsylvania. It was built in 2001. The arena sits on the former site of the Astor Theatre. Closed in 1975, the theatre sat vacant, until it was torn down in 1998, to make room for the arena....
Arena and Sovereign Performing Arts Center in Reading, Pennsylvania, and Sovereign Bank Stadium
Sovereign Bank Stadium
Sovereign Bank Stadium is a 5,200-seat baseball park in York, Pennsylvania that hosted its first regular season baseball game on June 16, 2007, as the tenants of the facility, the York Revolution, defeated the Newark Bears, 9-6. Located on Codorus Creek, the facility had been in the planning...
in York
York, Pennsylvania
York, known as the White Rose City , is a city located in York County, Pennsylvania, United States which is in the South Central region of the state. The population within the city limits was 43,718 at the 2010 census, which was a 7.0% increase from the 2000 count of 40,862...
, Pennsylvania. In 2000, it bought 285 New England branches from the newly-merged FleetBoston Financial
FleetBoston Financial
FleetBoston Financial was a Boston, Massachusetts–based bank created in 1999 by the merger of Fleet Financial Group and BankBoston. In 2004 it merged with Bank of America; all of its banks and branches were given the Bank of America logo.-History:...
.
On June 1 2006, Sovereign Bank purchased Independence Community Bank Corp. of Brooklyn, New York, for US$3.6 billion in cash. Sovereign completed the transition process of Independence and S.I. Bank & Trust customers on September 9 2006. Sovereign financed this merger by selling a 20% stake in the bank to Spain's Banco Santander Central Hispano.
In June 2006, Banco Santander purchased almost 20% of Sovereign Bank for US$2.4 billion. As Banco Santander owned 25% of Sovereign, it had the right to buy the bank for $40 per share for one year beginning in the middle of 2008.
On October 13, 2008, Banco Santander agreed to purchase the remainder of Sovereign for US$1.9 billion (1.4 billion euros). Sovereign Bank had been severely affected by losses related to auto loans and stock in Fannie Mae and Freddie Mac. On January 30, 2009, Banco Santander completed its acquisition of Sovereign Bank, for about $2.51 per share.
In August 2011, the bank announced its plans to formally relocate its headquarters from Wyomissing, Pennsylvania
Pennsylvania
The Commonwealth of Pennsylvania is a U.S. state that is located in the Northeastern and Mid-Atlantic regions of the United States. The state borders Delaware and Maryland to the south, West Virginia to the southwest, Ohio to the west, New York and Ontario, Canada, to the north, and New Jersey to...
to Boston
Boston
Boston is the capital of and largest city in Massachusetts, and is one of the oldest cities in the United States. The largest city in New England, Boston is regarded as the unofficial "Capital of New England" for its economic and cultural impact on the entire New England region. The city proper had...
, Massachusetts
Massachusetts
The Commonwealth of Massachusetts is a state in the New England region of the northeastern United States of America. It is bordered by Rhode Island and Connecticut to the south, New York to the west, and Vermont and New Hampshire to the north; at its east lies the Atlantic Ocean. As of the 2010...
where its top executives have already been located for the past few years.
In late September 2011, the bank announced that it will officially change its name to "Santander" as part of its parent company's goal to create a global brand. It was reported that the name change could take place as early as 2012.