The banks and institutional investors underwriting Bradford & Bingley’s third attempt at a rights issue are facing significant losses if the lender’s shares do not rally after a fresh tumble on Tuesday.

B&B’s share price fell to a new low of 35p, down 17 per cent, by Tuesday midday. It had already lost 16 per cent the previous day to close at 42p, compared with the 55p-a-share issue price for the revised £400m cash call.