Deutsche Bank and Goldman Sachs have emerged at the centre of US private equity firm TPG Capital’s rescue of UK mortgage lender Bradford & Bingley, which has been forced to scale back the size of its rights issue following a sharp drop in its share price.

Bradford & Bingley turned to Goldman Sachs to advise it on a last-minute investment by TPG, which was advised by Deutsche Bank, after fears grew over the past week that a £300m (€383m) rights issue, fully underwritten by Citigroup and UBS, was facing problems.