The sweeping financial reform bill is now a law. While most people know what it’s supposed to mean for Wall Street banks, fewer, perhaps, understand what it will mean for consumers and consumer ETFs.

The bill includes measures that will provide the Feds with new power, allow the government to shut down large financial companies on the verge of failure, change the rules on how financial firms engages risky and speculative behavior and give shareholders a greater voice in executive pay, writes Miranda for Financial Highway.

Disappointing earnings from a slew of giants, including Google (GOOG), Bank of America (BAC) and Citigroup (C) primarily dragged financial exchange traded funds down by as much as 4% in early trading.

JPMorgan’s (JPM) earnings may have been an anomaly. Bank of America’s earnings fell 3.1% – less-than-expected, but disappointing to investors. Citigroup’s profit in the second quarter fell 37%, which beat estimates. Analysts were less excited about the 33% decline in revenue, which was more than expected. Financial ETFs were walloped on the news, with the ones holding the biggest banks declining the most.

Worries about the domestic and global economy didn’t wind down along with the second quarter. They’re hanging around, dogging the markets and ETFs right into the third quarter.

Financial overhaul made another step closer to becoming a reality late yesterday after the House approved it. It’s now marching over to the Senate, where it may encounter some resistance.