Sovereign Names Perrault CEO

Sovereign Bancorp said Paul A. Perrault will succeed CEO Joseph Campanelli, effective January 3, 2009, according to The Wall Street Journal.

Perrault, former CEO of Chittenden, a New England regional bank acquired last year, will also become the Pennsylvania’s bank’s president.

After a sharp decline on Monday, shares of Sovereign recovered Tuesday amid expectations for the CEO announcement and hopes for a revised bailout plan. Three investment banks raised their ratings on the bank Tuesday.

Perrault was chosen by Sovereign’s three-member-executive-search committee. Sovereign also tried to reassure concerned investors that the bank is “well capitalized,” has $12 billion in unused committed liquidity from the Federal Home Loan Bank of Pittsburgh, and the Federal Reserve, and has been cutting risk, according to WSJ.

Perrault will be joining the Sovereign team with 11 other members on the board of directors.