Dec 13 (Reuters) - U.S. bank stocks showed little

reaction to a report that President-elect Donald Trump's

transition team was planning to severely shrink or eliminate top

banking regulators as Wall Street does not expect such a move to

receive the required political backing.

Trump advisers and officials from the newly founded

Department of Government Efficiency (DOGE) have considered

potentially eliminating the Federal Deposit Insurance Corp

(FDIC), the Wall Street Journal reported on Thursday, citing

people familiar with the matter.

Restructuring the major federal regulatory agencies would be

a very complex task, ING sector strategist Marine Leleux said.

"...It would require congressional action and despite the

Republican party majority in both the Senate and the House, it

would require support from the Democrats which remains very

unlikely," Leleux said.

Advisers have asked the nominees under consideration for the

FDIC if the absorption of the agency into the Treasury

Department could be possible, the WSJ reported.

U.S. banking stocks JPMorgan Chase ( JPM ), Wells Fargo ( WFC )

, Citigroup ( C/PN ), Bank of America ( BAC ), Morgan

Stanley ( MS ) and Goldman Sachs ( GS ) fell less than 1%.

Top U.S. banking executives expect Trump's incoming

administration to adopt pro-growth policies while doing away

with regulations regarded by some as onerous.

"Regulators will likely replace or ease banking regulation

that was implemented under the Biden era," Stephens analyst

Terry McEvoy said. "A Republican led Senate Banking Committee

will likely play a role in some of these changes."

The FDIC plays a key role in the financial stability of the

world's largest economy with its deposit insurance fund

backstopping trillions in insured bank deposits.

The string of regional bank failures last year created

instability in the banking industry and added tens of billions

in losses to the agency's deposit insurance fund.

"It is truly outrageous if he is serious about eliminating

the FDIC. It is the only regulatory entity whose professionals

have the expertise and ability to do bank resolutions," said

Mayra Rodriguez Valladares, bank and capital markets risk

consultant at MRV Associates.

(Reporting by Arasu Kannagi Basil and Jaiveer Shekhawat in

Bengaluru and Matt Tracy in Washington; Editing by Noor Zainab

Hussain and Anil D'Silva)