Donald Trump assailed Wall Street on the campaign trail, andfrequently criticized his political opponents for their ties toGoldman Sachs Group Inc. Now Trump is relying on a lawyer who hasspent his career representing financial firms, and has his ownclose ties to Goldman, to lead Wall Street's top regulator.

Trump will nominate Sullivan & Cromwell partner Jay Claytonto run the Securities and Exchange Commission, thepresident-elect's transition team said in a statement Wednesday.Clayton's clients represent a virtual who's who of industry titans,including hedge funds, private equity firms and Goldman, where hiswife has worked for almost two decades.

Still, Trump's advisers said Clayton will provide “strongoversight” of financial firms while helping do away with policiesthat have stifled job growth.

“Jay Clayton is a highly talented expert on many aspects offinancial and regulatory law, and he will ensure our financialinstitutions can thrive and create jobs while playing by therules,” Trump said in the statement. “We need to undo manyregulations which have stifled investment in American businesses,and restore oversight of the financial industry in a way that doesnot harm American workers.”

The choice of Clayton continues a surprise coup for financialfirms since Trump won the presidency in November. While Trumpattacked Wall Street during his run, and many bankers supportedHillary Clinton's candidacy, the president-elect has tapped anumber of industry insiders for key posts. His picks include formerGoldman partner Steven Mnuchin to be Treasury Secretary, formerGoldman President Gary Cohn for the top White House economic postand billionaire investor Wilbur Ross to lead the CommerceDepartment.

Mnuchin, Cohn and Stephen Bannon, Trump's chief strategist, wereamong those who pushed for Trump to pick Clayton, according to aperson with knowledge of the matter who asked not to be namedbecause the discussions were private. Bannon is also a formerGoldman employee.

Clayton, 50, helped represent Goldman in connection with the $10billion it received in 2008 as part of the government's $700billion bailout of banks during the financial crisis. He alsoworked on a $5 billion investment that Warren Buffett's BerkshireHathaway Inc. made in Goldman that year, according to Sullivan& Cromwell's website. Other clients have included Och-ZiffCapital Management Group and Oaktree Capital Group. Clayton alsoworked on high profile initial public offerings, including AlibabaGroup Holding's record $25 billion share sale in 2014.

His wife, Gretchen, is a wealth manager at Goldman, according toa person with knowledge of the matter. She has worked at the firmsince 2000, according to her LinkedIn profile.

Managing Conflicts

Clayton said in a statement he planned to work with “keystakeholders in the financial system to make sure we provideinvestors and our companies with the confidence to invest togetherin America.” He said he would “carefully monitor our financialsector, as we set policy that encourages American companies to dowhat they do best: create jobs.”

If confirmed by the Senate, Clayton would replace Mary Jo White,who has said she will step down when President Barack Obama leavesoffice later this month.

Sullivan & Cromwell is one of New York's most venerable lawfirms, and Clayton's work there will probably require him to stepaside from many SEC cases, ethics lawyers said. Under the law,Clayton would have to recuse himself from any matters involvingSullivan & Cromwell and his clients for one year. In addition,Clayton would be barred from ever weighing in on a specific deal orinvestigation that he had worked on at Sullivan & Cromwell.

Recusals typically apply to specific probes, rather than policymatters that impact an entire industry. So while Clayton would haveto step aside from cases involving his clients during his firstyear as chairman, for example an SEC investigation into Alibaba, hewould still be able to vote on an agency regulation that set outdisclosure rules for Chinese companies that sell shares to U.S.investors.

Wife's Job

His wife's job could also present issues, the ethics lawyerssaid. Because Goldman is overseen by the SEC, Gretchen Claytonwould have to sell any stock she owns in the firm. In addition, shewould likely need to be given a fixed salary and avoidparticipating in any profit-sharing plans Goldman offers employees.While it would be legal for her to continue working at Goldman,leaving the firm would be the cleanest way for her to deal with anyconflicts, said Richard Painter, who was the chief ethics lawyerfor President George W. Bush.

“It would be better for the country and better for theSecurities and Exchange Commission if she would find something elseto do,” said Painter, who's now a professor at the University ofMinnesota Law School.

A Goldman spokesman declined to comment.

Virtually all nominees who come from industry have to deal withconflicts of interest. White couldn't work on dozens of SEC cases,because of her past career as a defense lawyer. She also didn'tparticipate in any SEC matters where her husband's law firmrepresented a party involved.

Political Affiliation

While Clayton's Wall Street connections are obvious, hispolitical leanings are less clear. Voter registration records listhim as having no party affiliation. His political contributionsconsist of a $1,000 donation given in 2013 to the campaigncommittee of Delaware Attorney General Beau Biden, the late son ofDemocratic Vice President Joe Biden, according to the NationalInstitute on Money in State Politics.

Democratic lawmakers were skeptical of Trump's choice.California Representative Maxine Waters, the top Democrat on theHouse Financial Services Committee, said Clayton's nominationshowed “Trump has no intention of getting tough on WallStreet.”

Ohio's Sherrod Brown, the lead Democrat on the Senate BankingCommittee, said “it's hard to see how an attorney who's spent hiscareer helping Wall Street beat the rap will help keepPresident-elect Trump's promise to stop big banks and hedge fundsfrom 'getting away with murder.”'

For years, the SEC's agenda has been largely dictated byimplementing rules required under the Dodd-Frank Act, the sweepinglegislation Congress passed in response to the 2008 meltdown.Trump's transition team has promised to dismantle the law. Claytonwould likely play a key role in efforts to roll back rules forinvestment firms and brokers.

To get the SEC back to full strength, Trump will also need tonominate two others to the five-member commission, anotherRepublican and a Democrat. After White steps down, the SEC will bedown to two commissioners, Republican Michael Piwowar and DemocratKara Stein.

Bloomberg News

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