Barclays' share price slumped to its lowest level since 1985 on Wednesday as fears of further write-downs and possible nationalisation continued to plague sentiment.
The stock dived to less than 49p in early trading although it has since staged a mini-rally to climb to over 56p again.
As recently as February 2007, Barclays shares were worth £7.90 each but, this month alone, they have lost upwards of 65% of its value.
Lloyds TSB also plummeted in early trading, falling more than 10% to 40p, helping pull the FTSE to a two-month low of 4,020. Not since 21 November, when London's leading blue-chip index stood at 3,780, has the FTSE been so low.
Elsewhere Standard Chartered is approaching a 10% fall, but RBS and Old Mutual have posted early gains of 4% and 3% respectively.
In the US, the euphoria surrounding the inauguration of President Barack Obama failed to spur investors as Wall Street suffered another day of significant losses.
The Dow Jones closed more than 4% down while the S&P 500 slumped 5% and the Nasdaq almost 6%.
Financials dominated the loser's table with Bank of America, JPMorgan Chase and Citigroup posting massive drops of 29%, 20% and 20% respectively.IFAonline
Fidelity Multi Asset CIO's outlook
Willis Owen report
From 1 March
Fears ahead of end of QE
CEO of TeamBlockchain