Nov. 6 (Bloomberg) -- U.S. Senate Banking Committee Chairman Christopher Dodd said he will remain head of the panel that will play a key role in the next two years dealing with the economic crisis and overhauling U.S. financial regulation.

The panel will help President-elect Barack Obama identify and consider members of his economic team ``as quickly as possible'' and oversee the $700 billion financial-rescue program, Dodd said today at a Washington news conference.

``Putting our country back on a sound economic footing is our defining challenge,'' said Dodd, a Connecticut Democrat who became chairman two years ago. ``I'm proud of what we've been able to accomplish, but our work is far, far from finished.''

Dodd, 64, will lead a congressional panel that has a central role in crafting the government's response to the worst financial crisis since the Great Depression, overseeing the bank bailout plan and overhauling U.S. financial-services regulation.

``In the remaining weeks of this year, and into next year, we will execute an ambitious schedule of meetings, briefings and hearings to understand the strengths of our regulatory system and address its weaknesses,'' Dodd said.

Among other priorities, Dodd said he planned to consider legislation to create more affordable rental housing, strengthen consumer protection in mortgage and credit-card lending and improve transparency in the financial markets by requiring participants to report the risks they are taking.

The Banking Committee has jurisdiction over legislation related to the Federal Reserve, including confirmation hearings for Fed nominees, and authority to craft or review legislation for the banking and credit-card industries.

Treasury Secretary

Dodd reiterated that he would like to see President George W. Bush nominate Obama's choice for Treasury secretary before Obama takes office on Jan. 20.

``Given the magnitude of these problems, we cannot wait until then,'' Dodd said. ``Obviously, that's a call the president-elect would have to make.''

By retaining the chairmanship, Dodd passed up an opportunity to succeed Senator Joseph Biden, elected vice president this week, in leading the Foreign Relations Committee. Dodd is the second-ranking Democrat on that panel.

Committee assignments are being reshuffled after the election in which Democrats gained at least six Senate seats, giving the party greater representation on committees in the Congress that convenes in January.

Dodd, who became chairman in January 2007 and is up for re- election in 2010, has pressed the Federal Reserve to write rules reining in deceptive practices in mortgage lending and pushed the mortgage industry to do more to avert foreclosures.

Housing Programs

He was a lead negotiator on the financial-rescue package, and introduced and helped to pass legislation this year in the Senate to create a program at the Federal Housing Administration to insure up to $300 billion in refinanced loans for about 400,000 struggling borrowers.

Dodd took over the chairmanship in 2007 in the same month he announced his unsuccessful bid for the Democratic nomination for president, leading to criticism he was neglecting the committee. The senator's campaign also began as the scope of the mortgage crisis was emerging.

Dodd came under fire in June after reports said he got advantageous loan terms from Countrywide Financial Corp., the lender acquired by Bank of America Corp. and criticized by lawmakers over policies blamed for spurring the subprime crisis.

To contact the reporter on this story: Alison Vekshin in Washington at avekshin@bloomberg.net.

Last Updated: November 6, 2008 15:53 EST