Item 8.01 Other Events.

On January 14, 2008 Sovereign Bancorp, Inc. ("Sovereign") issued a press release announcing that it anticipates that its results for the fourth quarter of 2007 will be adversely impacted by the following charges expected to be recorded in the fourth quarter of 2007: (i) a pre-tax, non-recurring, non-cash charge of approximately $1.4 billion related to goodwill impairment; (ii) a pre-tax, non cash charge of $180 million related to impairment of certain Fannie Mae and Freddie Mac preferred stock securities; (iii) a provision for credit losses of approximately $140 million; and (iv) pre-tax charges of approximately $27 million related to financings provided to two mortgage companies that have defaulted on certain agreements. A copy of the press release is attached hereto as Exhibit 99.1 and incorporated herein by reference.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits Exhibit No. Description 99.1 Press Release, dated January 14, 2008, of Sovereign Bancorp, Inc.

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