Sovereign Bancorp, the second-largest US savings and loan, is poised to raise $1bn to $2bn in fresh capital from a group of investors led by Grupo Santander of Spain.

The deal, which could be announced as early as next week, would make Philadelphia-based Sovereign the latest in a growing line of struggling US banks seeking to raise capital to offset growing losses on mortgages, home equity, automotive and other types of consumer loans.