A "deal-cum-rights-issue" is now the most reasonable strategic option for Barclays, according to Evolution banks analyst Arturo de Frias, who has said that if a so-called "UK finish" on capital requirements puts core tier one at 10%, Barclays will be £7bn short in capital.

Evolution, which already had Barclays as a high conviction sell, has cut the target price on Barclays to 260 pence in a note titled "It is getting worse..."