HBOS shares dipped below their rights issue price again on Friday as the City watchdog’s new regime to flush out short sellers stuttered into action.

The bank, Britain’s biggest mortgage lender, was the subject of a slew of broker downgrades. Analysts at Citibank halved their expectations for HBOS’s profits and dropped their target share price from 425p to 275p. Credit Suisse analysts cut their target from 450p to 370p.