ANALYST VIEW: What analysts think of Fannie, Freddie bailout

(Reuters) - The U.S. government finally seized control of Freddie Mac and Fannie Mae on Sunday in efforts to calm the economy hit by over a year long credit and housing crisis.

As part of the plan, the Treasury is taking an equity stake in the companies, will purchase mortgage-backed securities that the mortgage giants issue and also extend a credit line to them.

Government's action is not only expected to stabilize the mortgage markets, but also have major implications for global markets and the nation's banks.

Here is a summary of comments from research issued from major brokerages since the announcement:

* LADENBURG THALMANN'S RICHARD BOVE

"Fannie and Freddie are gone and this is a good thing. They were mismanaged messes with accounting frauds that equaled those of Enron and WorldCom. They were blights on the U.S. government's capital raising ability. Their passing should allow a new system that is less threatening to emerge."

"The single largest beneficiary of these events is clearly Bank of America. This company's acquisition of Countrywide Financial will now appear to have been a stroke of brilliance."

"The nation's housing program loses. It took 71 years to build and perfect and three years to destroy what was built."

* FRIEDMAN BILLINGS RAMSEY'S PAUL MILLER JR

"Financials will rally in response to the news, in our opinion, but the duration of the rally will be determined by how low interest rates go and by what extent liquidity moves back into the mortgage market."

"Companies that should benefit the most include those with the greatest exposure to the mortgage businesses, including Bank of America, Flagstar, National City, PHH, Wachovia, Washington Mutual, and Wells Fargo."

* SANFORD C. BERNSTEIN'S BRAD HINTZ

"The immediate impact of this action will be to emphasize to equity investors the fragility of current U.S. credit conditions."

"For the brokers, the Government takeover of the GSEs will have only limited effects on revenue."

"Bernstein does not expect any material losses for the large capitalization U.S. securities firms arising from this government action."

"European Financials should be net beneficiaries in financial terms, as gains from appreciation and lower capital requirements on the GSE debt securities should outweigh any losses on the (generally modest) exposure to the GSE equity classes."