Nov 8 (Reuters) - Corporate attorney Jay Clayton, former

head of the U.S. Securities and Exchange Commission during

Donald Trump's presidency, is in talks for several potential

roles in a second Trump term, several sources familiar with the

matter said.

Clayton, who came into government in 2017 as a political

independent and veteran of law firm Sullivan & Cromwell, is seen

as a contender for jobs including attorney general and treasury

secretary, according to five sources. Two of the sources said

Clayton has also expressed an interest in running the CIA.

As SEC chief, Clayton was known for often forging

consensus with Democratic commissioners, and some former

staffers said he was able to shield the agency from political

controversies pervasive during the Trump administration. Under

him, the agency also clashed with billionaire Elon Musk, CEO of

Tesla and SpaceX who is now a major Trump donor and backer in

his 2024 campaign.

"What I recall is that under Clayton, the SEC was

insulated from the everyday political turmoil of Trump I," said

Richard Hong, a former SEC trial lawyer who was at the agency

under Clayton's leadership.

Clayton has let the transition team know he would be

"delighted to serve" in any senior position where he could be

effective, said one source familiar with Clayton's thinking.

The sources, including people close to the transition

team and to Clayton, provided details about the discussions that

have not previously been reported in the media. They requested

anonymity to speak about the deliberations.

The Trump campaign did not immediately respond to a request

for comment.

Trump's transition team is pulling together short lists of

candidates for top posts. It was not known what role, if any,

Clayton would get. Two of the sources said Clayton could be a

good candidate for attorney general, but they downplayed chances

he would be picked for treasury secretary, for which some major

Trump donors are in line.

While Clayton does not have experience as a criminal lawyer,

Trump nominated him in July 2020 to replace a top federal

prosecutor the president had fired. He ultimately did not get

that post.

Clayton has a reputation as a consensus builder, said

lawyers, former SEC staffers and others who know him. That might

comfort some Trump critics who want officials in the

administration who can stand up to a president keen to make

sweeping changes to the way the federal government functions.

"Among Trump appointees, Jay is as thoughtful and

consensus-building as they come," said Robert Jackson, a former

SEC commissioner who worked with Clayton and is a left-leaning

independent. "He can be expected to seek consensus where it's

available but he's unafraid to drive his agenda forward when

it's not."

Clayton served as SEC chair for all four years of

Trump's term, a notable feat in an administration marked by

quick-paced hirings and firings of top officials and military

brass.

FROM LAW FIRM TO THE SEC

Clayton, an attorney who specialized in mergers and capital

raising, was not initially a candidate for any post when Trump

was elected in 2016. Then Joseph Shenker, now Sullivan &

Cromwell's senior chairman, floated Clayton's name as SEC

chairman to Trump's son-in-law Jared Kushner, bypassing

billionaire investor and Trump donor Carl Icahn who was vetting

certain candidates.

Sullivan & Cromwell had represented Kushner's family

business. The source close to Clayton said Mark Dalton, head of

hedge fund Tudor Investment, also provided an initial

introduction, and Clayton got the job.

As SEC chief, Clayton at times, early on, frustrated

Republican lawmakers and some business groups for his

consensus-building and willingness to ally with Democratic

commissioners. The source familiar with Clayton's thinking said

he had not heard such complaints and noted that several key

Republicans supported his approach.

Over time, Clayton pushed through more than two dozen

measures that eased regulations for corporate America. Critics

said these weakened investor safeguards or diminished investor

rights.

SEC enforcement during his tenure focused on issues seen as

typical for Republican administrations aimed at protecting

individual investors and smooth functioning of markets. The

agency also pursued numerous cases in the cryptocurrency sector,

but mostly smaller scale cases than the major ones brought under

Democratic President Joe Biden's SEC Chief Gary Gensler.

IN TOUCH WITH TRUMP

One of the SEC's most high profile cases under Clayton

involved suing Musk after the Tesla boss sent shares soaring on

Aug. 7, 2018 by tweeting "funding secured" to take the publicly

listed automaker private. Musk chafed under terms of a

settlement that required company lawyers to vet his future

tweets.

Since then, Musk acquired Twitter and renamed it X. He also

became one of Trump's biggest supporters, contributing at least

$119 million to a pro-Trump group. He is expected to advise the

administration.

After Biden defeated Trump in 2020, Clayton returned to

Sullivan & Cromwell, joined the board of alternative investment

manager Apollo Global Management and frequently appeared on CNBC

as a commentator. He has kept in touch with Trump, several

sources said.

Over the years as Trump harbored grievances and spread false

claims about a stolen election, Clayton remained upbeat, neutral

and friendly with Trump. The two occasionally played golf, with

Trump at one point giving him a tip on the way he should hold

his club, the source close to Clayton said.

"The best way to use him is to put him in a role where

there's a specific mandate," said Kristina Littman, a former SEC

enforcement lawyer and senior adviser to Clayton from 2017-2019.

"He will deliver."

(Additional reporting by Lawrence Delevingne, David Lawder,

Douglas Gillison; Editing by Paritosh Bansal and David Gregorio)