WASHINGTON, Sept 23 (Reuters) - A plan that the U.S. Treasury conceived to restore confidence in credit markets is “unacceptable” in its current form, but Congress could pass a plan if changes are made, the chairman of the Senate Banking Committee said on Tuesday.

“What they have sent us is not acceptable,” said Sen. Christopher Dodd, who heads the senate’s law-writing panel.

Treasury Secretary Henry Paulson offered a plan on Saturday to authorize the government to use taxpayer funds to buy up billions of dollars in bad mortgage-backed securities that were created by investment banks during the home price bubble.