CORRECTED - US STOCKS-Banks sink Wall St on Inauguration Day

(Corrects date to Dec. 1 in VIX reference in paragraph 14)

* Obama speech yields few details

* Big-cap tech shares slide before IBM earnings

* Bank index sheds 20 percent on worries of future losses

* Dow off 4 pct, S&P off 5.3 pct, Nasdaq off 5.8 pct

* For up-to-the-minute market news, click [STXNEWS/US] (Adds Citigroup, Bank of New York Mellon and context on Dow)

By Chuck Mikolajczak

NEW YORK, Jan 20 (Reuters) - Wall Street ushered in the Barack Obama presidency with a record Inauguration Day drop on Tuesday amid fresh signs the global bank crisis was far from over.

High expectations for details on how the new administration would address the growing banking crisis and faltering economy were dampened after the inauguration speech concluded with little new information to digest.

State Street Corp (STT.N), the world's largest institutional money manager, spooked investors about what is considered one of the safest areas in banking when it said it had a $6.3 billion unrealized loss in its investment portfolio and lowered its outlook. Its shares plunged 59 percent to $14.89.

"Stocks are getting crushed because of the never-ending tragedy that has fallen upon the banking sector," said Tom Sowanick, chief investment officer of Clearbrook Financial LLC in Princeton, New Jersey.

The Dow Jones industrial average .DJI dropped 332.13 points, or 4.01 percent, to 7,949.09. The Standard & Poor's 500 Index .SPX slid 44.90 points, or 5.28 percent, to 805.22. The Nasdaq Composite Index .IXIC tumbled 88.47 points, or 5.78 percent, to 1,440.86.

The decline for the Dow marked the largest point and percentage drop for the index since Dec. 1, 2008, and the first time the Dow has been below 8,000 since Nov. 20, 2008.

Since Obama won the election in November, Wall Street has been betting he will put plans in place to help stabilize the sliding economy and stem rising unemployment.

"I think the expectations were over the top to begin with," said Marc Pado, U.S. market strategist at Cantor Fitzgerald & Co in San Francisco. "When you have that kind of expectation, you're going to get disappointed."

The negative tone for the financial sector was set in Britain by the Royal Bank of Scotland (RBS.L), which unveiled that it expects to take the biggest loss in British corporate history on Monday, when U.S. markets were closed for the Martin Luther King holiday.