Regional banks were among the hardest hit from mounting scepticism over the extent to which Washington’s proposed $700bn Wall Street bail-out would resuscitate the crisis-hit financial sector.

Regions Financial, Marshall & Ilsley and Huntington – all of which surged last week when news of the government plan surfaced – sustained heavy losses, down 21.2 per cent at $15.60, 22.6 per cent at $22.82 and 23.1 per cent at $9.81 respectively.