The appointment of David Bennett as chief executive of Alliance & Leicester a year ago was seen by many market insiders as a conservative, steady-as-she-goes strategy. Yesterday’s big reshuffle of the senior managers at the bank perhaps signalled a new tack.

As the youthful, unassuming Mr Bennett rearranged chairs at the top of the bank, he watched as A&L’s share price fell dramatically, with TPG’s decision to pull out of plans to buy a stake in Bradford & Bingley hitting the banking sector.

The wake generated by the declining fortunes of rival banks is nothing new to Mr Bennett. When he replaced Richard Pym at the top of A&L last June, its shares had slumped by more than 40 per cent largely because of fears that it had joined Barclays and Northern Rock in tapping the Bank of England for emergency funds.

Yesterday the bank had to endure its share price falling 12 per cent, or 36¼p, to 255½p, valuing it at about £1.1 billion. Its shares have fallen 58 per cent this year.

Analysts suggested that A&L was being tarred by the same brush as Bradford & Bingley, despite its assets being of better quality.

As part of the changes announced yesterday, Richard Banks, A&L’s commercial banking head, becomes group risk director. Chris Rhodes, group finance director, will oversee its treasury unit in addition to his current duties.

Bryce Glover, director of corporate banking, will succeed Mr Banks as head of commercial banking. Ian Buchanan, information technology head, becomes group manufacturing director, overseeing customer services and the group’s back-office processes. A&L also said that it was still looking for a new consumer bank head.

Mr Bennett, a rugby-loving father of two, joined the bank as group treasurer in 1999. He has many years’ experience in the financial sector, as finance director of Cheltenham & Gloucester and then as an executive director of the National Bank of New Zealand.

After being appointed to the A&L board in 2000 and handling the books for seven years, he took the top job last year after the surprise exit of Mr Pym, who had held the role for five years.

He also became a nonexecutive director at easyJet, the budget airline, two years ago.

Mr Bennett studied at Queen’s College, Cambridge, and lists his hobbies as watching Gloucester rugby club and hiking.

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