Sovereign 4Q Net Loss Widens; Dividend Suspended

Sovereign lost $1.6 billion in the quarter, or $3.34 per share, compared with a loss of $129 million, or 28 cents per share, in the same quarter a year ago.

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About half the write-down came from a decline in business at Independence Community Bancorp in Brooklyn, which Sovereign purchased over some shareholder objections in June 2006. The goodwill write-down was higher than what Sovereign disclosed last week.

Sovereign also booked $180 million in pretax, noncash charges related to the decline in value of its Fannie Mae and Freddie Mac preferred shares. Another $27 million in charges came from loan defaults by two unspecified mortgage companies.

Sovereign increased its reserves for loan and lease losses -- a buffer against bad debt -- by $88 million to $738 million.