Sovereign needs capital; Santander not ready to merge

UPDATE 5/9: "The Financial Times reported last yesterday afternoon that Sovereign, which neither confirmed nor denied the report, was poised to raise between $1 and $2 billion of equity capital as early as next week. If the news is true, investors should wait for Sovereign’s imminent deal to raise capital, rather than buy the stock ahead of it.  (A) capital raise could portend significant operating losses and/or asset writedowns, but there is no doubt that additional capital would strengthen the balance sheet and help longer-term prospects." -- Rick Weiss, bank analyst, Janney Montgomery Scott   

5/7: Sovereign Bancorp: Stock down, needs cash, isn't set to get more from partner Santander. Reuters story here.