07:49 AM EDT, 09/16/2024 (MT Newswires) -- (Updates with a Trump campaign spokesperson's response in the last paragraph.)

Presidential candidate Donald Trump's allies are discussing plans to privatize Fannie Mae and Freddie Mac, the Wall Street Journal reported Friday, citing people familiar with the matter.

The people involved include Larry Kudlow, former director of the National Economic Council, and John McEntee, former director of the White House presidential personnel office, the report said.

Talks were ongoing since the past spring and included consulting investment managers for advice on how to get the deal done, the Journal said.

Under a potential agreement, the US government would seek to sell a portion of its stake in Fannie and Freddie to sovereign wealth funds and other investors, the Wall Street Journal said, adding that the government's stake in the two mortgage companies may be valued at hundreds of billions of dollars.

Trump's allies have held talks discussing whether the Treasury Department could back a portion of Fannie and Freddie loans via a standby guarantee, the people said.

Hedge fund manager Bill Ackman's Pershing Square holds approximately 10% in common shares of both Fannie and Freddie while John Paulson holds a stake of preferred shares in the two mortgage companies, according to the report.

"The [former] president himself has never said anything about this throughout the campaign," a Trump campaign spokesperson told MT Newswires.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)