Sep. 9--Shares of Wachovia Corp. and Bank of America Corp. rallied on Monday, the day after the federal government announced it would take over troubled mortgage giants Fannie Mae and Freddie Mac.

Industry leaders said the deal is generally good for banks because it helps remove some of the uncertainty hanging over the nation's troubled housing market. But some banks, including Wachovia and Bank of America, are expected to take a hit on preferred shares of Fannie and Freddie that they own or have recently sold off. About half a dozen smaller Charlotte-area banks said Monday that they have little to no exposure to Fannie and Freddie stock.

Banks throughout the area, including Wachovia and Bank of America, lauded the takeover as a way to restore stability to financial markets and effect lower mortgage rates, though a few expressed concerns about the government's expanding role in the economy. Over the weekend, the government took control of the two federally chartered companies, injecting them with capital and ousting the CEOs.

Troubled Fannie and Freddie "were like a big cloud hanging over the financial markets," said Ken Thomas, a Miami-based bank consultant and economist.

"Anything that's good for the mortgage market is good for Bank of America and Wachovia," he added, "and anything that's good for Bank of America and Wachovia is good for Charlotte."

Analyst Dick Bove of Ladenburg Thalmann & Co. called Bank of America the "single largest beneficiary of these events." That's because, with its purchase of Countrywide Financial Corp., it has the technology to pick up the business of Fannie and Freddie, he said.

Wachovia shares closed at $18.99, up 13 percent. Bank of America closed at $34.73, up 8 percent, on a day when the Dow rose about 2.5 percent. But Gerard Cassidy, an analyst at RBC Capital Markets, said it's too early to get excited, pointing out that the U.S. and global economies are still weakening. Even if the consumer real estate market improves, commercial and industrial loans and commercial real estate loans will be the "next credit shoe to drop on the banking industry," he said.

Besides, Cassidy said, the government takeover will not encourage people to buy houses: "It has been our experience the decision to buy a house is driven by the potential homeowner's confidence about their job and income, not mortgage rates."

Banks can sell their mortgages to Fannie and Freddie, who package them as bonds and resell them.