Michael Fallon in fight to head Treasury Select Committee

Michael Fallon, the Conservative MP, today launched his campaign to become the new chairman of the powerful Treasury Select Committee.

Fallon, who was deputy chairman of the committee in the previous Parliament, today resigned as a
non-executive director of broker Tullett Prebon.

He caused a storm there two years ago when, as chairman of the firm's remuneration committee, he approved a £4.5 million bonus for chief executive Terry Smith after criticising Sir Fred Goodwin's departure pay-off from Royal Bank of Scotland.

A Tullett spokesman said: "Michael believes that it would be inappropriate to continue as non-executive here whilst he is standing for the chairmanship of the Treasury Select Committee."

Fallon believes he will face rivals for the job but has a strong case given his performance on it during the banking crisis and its aftermath.

One senior City figure told the Standard: "If the taxpayer wants the Treasury Select Committee to be able to grill those silver-tongued, lying bankers without them making the MPs look stupid, then Fallon's the man. He actually understands how derivatives work."