By Ryan Tracy

WASHINGTON -- President-elect Donald Trump's transition team promised Wednesday to dismantle the 2010 Dodd-Frank law, signaling the incoming administration will seek to remake the way the U.S. oversees the financial sector.

The brief note on Mr. Trump's new website marked the first time since Tuesday's election that the president-elect addressed financial regulatory policy. The statement was consistent with Mr. Trump's campaign trail rhetoric, blaming the Obama administration's signature response to the financial crisis for a tepid economy and promising to "replace it with new policies to encourage economic growth and job creation," but providing few details.

Whether Mr. Trump can keep that promise, and how far those changes will reach, depends in large part on what happens in Congress. Financial regulation hasn't been mentioned by Mr. Trump as something on the White House agenda during his first 100 days in office. Privately, Republicans are tempering expectations. "I don't think that you're going to see major efforts to throw out Dodd-Frank wholesale," said a person who has advised the Trump campaign on regulatory policy.

If the process of changing Dodd Frank initially takes a backseat to other Republican priorities, such as health-care policy, it would begin with the congressional committees that oversee the financial sector, not with the White House.

Republicans in the House and Senate are already salivating over the chance to pass legislation that for years hasn't stood a chance of avoiding President Barack Obama's veto pen. But they also risk losing support if they push too far, according to lobbyists and congressional aides.

For instance, some Republicans are split over the idea of removing Title II of Dodd- Frank, which gives financial regulators authority to take over and unwind huge financial firms as a way of avoiding future bailouts. On the other hand, Republicans might need to pick up some Democratic votes to move the bill through the Senate, and that party is almost sure to oppose major changes to core Dodd-Frank provisions, such as the Volcker rule barring banks from some forms of proprietary trading. .

House Financial Services Committee Chairman Jeb Hensarling (R., Texas) last year laid out a blueprint for replacing Dodd -Frank , and many observers view that as a starting point. It is built around a trade-off: Banks can free themselves from various regulations, such as tough stress testing, so long as they maintain capital equal to at least 10% of total assets and high ratings from the regulator. That would immediately help many small, locally focused banks, but not necessarily megabanks with sprawling international operations.

Write to Ryan Tracy at ryan.tracy@wsj.com

(END) Dow Jones Newswires

November 10, 2016 15:20 ET (20:20 GMT)

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