SOVEREIGN CAPITAL TRUST I

                    OFFER FOR ALL OUTSTANDING
      9.00% ORIGINAL SUBORDINATED CAPITAL INCOME SECURITIES
                         IN EXCHANGE FOR
      9.00% EXCHANGE SUBORDINATED CAPITAL INCOME SECURITIES

To:  Brokers, Dealers, Commercial Banks, Trust Companies and
     Other Nominees:

     Sovereign Capital Trust I (the "Trust") is offering, upon
and subject to the terms and conditions set forth in a prospectus
dated __________, 1997 (the "Prospectus"), and the enclosed
letter of transmittal (the "Letter of Transmittal"), to exchange
(the "Exchange Offer") its 9.00% Exchange Subordinated Capital
Income Securities for any and all of its outstanding 9.00%
Original Subordinated Capital Income Securities (the "Original
Capital Securities").  The Exchange Offer is being made in order
to satisfy certain obligations of the Trust and Sovereign
Bancorp, Inc. (the "Corporation") contained in the registration
rights agreement dated March 24, 1997, among the Trust, the
Corporation and the initial purchasers referred to therein.

     We are requesting that you contact your clients for whom you
hold Original Capital Securities regarding the Exchange Offer. 
For your information and for forwarding to your clients for whom
you hold Original Capital Securities registered in your name or
in the name of your nominee, or who hold Original Capital
Securities registered in their own names, we are enclosing the
following documents:

          1.   The Prospectus dated __________, 1997;

          2.   The Letter of Transmittal for your use and for the
information (or the use, where relevant) of your clients;

          3.   A Notice of Guaranteed Delivery to be used to
accept the Exchange Offer if certificates for Original Capital
Securities are not immediately available or time will not permit
all required documents to reach the Exchange Agent prior to the
Expiration Date (as defined below) or if the procedure for book-
entry transfer cannot be completed on a timely basis;

          4.   A form of letter which may be sent to your clients
for whose account you hold Original Capital Securities registered
in your name or the name of your nominee, with space provided for
obtaining such clients' instructions with regard to the Exchange
Offer; and

          5.   Guidelines for Certification of Taxpayer
Identification Number on Substitute Form W-9.

     YOUR PROMPT ACTION IS REQUESTED.  THE EXCHANGE OFFER WILL
EXPIRE AT 5:00 P.M., NEW YORK CITY TIME, ON __________, 1997, OR
ON SUCH LATER DATE OR TIME TO WHICH THE CORPORATION OR THE TRUST
MAY EXTEND THE EXCHANGE OFFER (THE "EXPIRATION DATE").  THE
ORIGINAL CAPITAL SECURITIES TENDERED PURSUANT TO THE EXCHANGE
OFFER MAY BE WITHDRAWN AT ANY TIME BEFORE THE EXPIRATION DATE.

     To participate in the Exchange Offer, your clients must
tender by having you execute for them a book-entry transfer of
tendered Original Capital Securities into the account of The Bank
of New York, as Exchange Agent, at The Depository Trust Company
("DTC") using DTC's Automated Tender Offer Program. (Your clients
may also tender by having certificates representing the Original
Capital Securities, a duly executed and properly completed Letter
of Transmittal (or facsimile thereof), with any required
signature guarantees, and any other required documents delivered
to such Exchange Agent.) The Letter of Transmittal and the
Prospectus should be consulted for complete instructions and
information about participation in the Exchange Offer.

     If holders of Original Capital Securities wish to tender,
but it is impracticable for them to forward their certificates
for Original Capital Securities prior to the expiration of the
Exchange Offer or to comply with the book-entry transfer
procedures on a timely basis, a tender may be effected by
following the guaranteed delivery procedures described in the
Prospectus under "The Exchange Offer -- Procedures for Tendering
Original Capital Securities -- Guaranteed Delivery."

     The Trust will, upon request, reimburse brokers, dealers,
commercial banks and trust companies for reasonable and necessary
costs and expenses incurred by them in forwarding the Prospectus
and the related documents to the beneficial owners of Original
Capital Securities held by them as nominee or in a fiduciary
capacity.  The Trust will pay or cause to be paid all stock
transfer taxes applicable to the exchange of Original Capital
Securities pursuant to the Exchange Offer, except as set forth in
Instruction 6 of the Letter of Transmittal.

     Any inquiries you may have with respect to the Exchange
Offer, or requests for additional copies of the enclosed
materials, should be directed to The Bank of New York, the
Exchange Agent for the Original Capital Securities, at its
address and telephone number set forth on the front of the Letter
of Transmittal.

                              Very truly yours,

                              SOVEREIGN CAPITAL TRUST I


     NOTHING HEREIN OR IN THE ENCLOSED DOCUMENTS SHALL CONSTITUTE
YOU OR ANY PERSON AS AN AGENT OF THE TRUST OR THE EXCHANGE AGENT,
OR AUTHORIZE YOU OR ANY OTHER PERSON TO USE ANY DOCUMENT OR MAKE
ANY STATEMENTS ON BEHALF OF EITHER OF THEM WITH RESPECT TO THE
EXCHANGE OFFER, EXCEPT FOR STATEMENTS EXPRESSLY MADE IN THE
PROSPECTUS OR THE LETTER OF TRANSMITTAL.

Enclosures