Banks seek new defender as Knight quits BBA post

THE public face of the banking industry, Angela Knight, has quit her post after five tumultuous years as boss of powerful lobbying group the British Bankers’ Association.

The former Tory MP became a familiar face to millions of households as she appeared regularly on TV to defend bankers’ bonuses and the actions taken by her members during the financial crisis.

Yesterday she announced her resignation, the day after her fifth anniversary in the post, leaving the banking industry in need of someone else to protect its battered reputation.

She admitted the job had been ‘deeply uncomfortable at times’, but said she had tried to find a balance, and apologised when the banking industry had misbehaved.

Knight, who will stay on until a replacement is appointed, said she plans to do one more big job before she retires, and is currently assessing her options. But she dismissed speculation of a return to politics and indicated another role in the City was more likely. It is understood the recruitment process, spearheaded by City headhunter Egon Zehnder, started months ago.

It has been an eventful five years at the helm. Knight joined the BBA in April 2007, just months before the collapse of Northern Rock heralded the start of the worst financial crisis in living memory.

Knight became the lightning rod for the excesses and misbehaviour of banks – from the mis-selling of payment protection insurance (PPI) to public fury over eye-watering overdraft charges.

She spearheaded the banking industry’s attempt to block demands to pay out billions of pounds in compensation to customers mis-sold PPI.

Marcus Agius, chairman of the BBA and Barclays, yesterday paid tribute to Knight’s ‘extraordinary leadership and energy’. But consumer groups were less complimentary.

Marc Gander, founder of the Consumer Action Group, said: ‘Knight has done an excellent job defending every bit of immoral behaviour during the financial crisis created by the banking sector. One wonders who the banking industry will get next to be its mouthpiece.’

Prior to joining the BBA, Knight represented stockbrokers and fund managers as chief executive of the Association of Private Client Investment Managers and Stockbrokers for almost ten years.

She was a Conservative councillor and chief whip on Sheffield City Council from 1987 to 1992 and became MP for Erewash (on the Derbyshire and Nottinghamshire borders) in 1992 before serving as economic secretary to the Treasury.