The row over the anti-capitalist protest outside St Paul’s Cathedral has claimed another victim.

The Dean, the Right Rev Graeme Knowles, resigned saying his position was “untenable”.

His departure followed those of Canon Chancellor of St Paul’s Giles Fraser and part-time chaplain Fraser Dyer.

The dean made the initial announcement that the historic cathedral, in London, had closed its doors for the first time since the Second World War because of fears over health and safety.

Mr Knowles, who had been Dean for four years, said: “The past fortnight has been a testing time for the chapter and for me personally.

“It has become increasingly clear to me that, as criticism of the cathedral has mounted in the press, media and in public opinion, my position as dean of St Paul’s was becoming untenable.

“In order to give the opportunity for a fresh approach to the complex and vital questions facing St Paul’s, I have thought it best to stand down as dean, to allow new leadership to be exercised. I do this with great sadness, but I now believe that I am no longer the right person to lead the chapter of this great cathedral.”

Last night a group of about 50 protesters left the camp to march further into the City. Dressed as “zombie bankers” to mark Hallowe’en, they danced to Michael Jackson’s Thriller, stopping traffic in front of the Bank of England.

Holding banners saying “Dancing on the grave of capitalism” and “the G20 can-can”, they handed out paper money to demonstrate against capitalism.

Police moved them off the road after 10 minutes and they marched down Liverpool Street and danced in front of Royal Bank of Scotland offices on Bishopsgate for about 15 minutes. Officers formed a human barricade in case they tried to get in, before the march ended peacefully.