Financial exchange traded funds (ETFs) and the broader markets so far today don’t seem to be lifted by the government’s bailout plan.

Wall Street is following up two days of huge gains with a drop of more than 150 points. Leaders in Congress are endorsing the main point of the $700 billion plan, but are calling for other things such as independent oversight, protections for homeowners and limits on excessive executive compensation, reports Louise Watt for the Associated Press.

While the government weighs its options, oil is heading up higher again near $107 a barrel.

Meanwhile, Wall Street’s last two investment banks are no longer: Goldman Sachs (GS) and Morgan Stanley (MS) are becoming bank holding companies in order to stay in business, reports Martin Crutsinger for the Associated Press. The move will allow them to create commercial banks that can take deposits and continue under the direct regulation of the Federal Reserve.

American International Group’s (AIG) former CEO Robert Willumstad rejected a $22 million severance payment, Savio D’Souza for Reuters reports. Willumstad rejected the severance on the basis that he wasn’t able to execute the plan for restructuring that he had developed.

• Financial Select Sector SPDR (XLF), down 21.3% year-to-date
• Regional Bank HOLDRs (RKH), down 6.5% year-to-date
• iShares Dow Jones Broker-Dealers (IAI), down 38.1% year-to-date

Tags: Financial, IAI, RKH, Sector ETFs, XLF