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Boston Bank Gets New Chief, Stock Rebounds

Boston-run Sovereign Bancorp has named a new CEO. WBUR's Curt Nickisch reports.

Sovereign Bank has named a former Boston banking executive, Paul Perrault, to replace Joe Campanelli as chief executive. But the company says the move has been scheduled for a while and is not connected to volatile ride company stock has taken so far this week.

Yesterday, shares plummeted 72% amid the bank failures and the overall big drop on Wall Street. Today the Sovereign stock rebounded almost 70%.

John Hamill, who heads the bank's New England operations out of Boston, says the company has sold off its troubled mortgage assets and has enough cash reserves to avoid failure. He says deposit holders have not been withdrawing money.

For WBUR, I'm Curt Nickisch.

This program aired on September 30, 2008. The audio for this program is not available.

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