At least 10 asset managers and hedge funds have revealed they are shorting more than 0.25% of mortgage lenders HBOS or Bradford & Bingley after new disclosure rules requiring short sellers to reveal positions in companies that are involved in rights issues came into force.

Their actions were almost immediately overshadowed by the revelation that Resolution Limited, a financial services restructuring company, may inject £400m (€506.19m) into Bradford & Bingley in a structure that could leave it owning more than 30% of the latter firm's shares. Bradford & Bingley's shares were down 3.65% to 66p by market close today, after spending most of the day at above 69p.