The City roundup: 'Northern Rock style deposit flight' could occur if Scotland votes 'Yes'

Video: Alex Lawson provides a run-down of the day's major news from the City

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The Independent Online

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Sir John Gieve, the former Bank of England deputy governor for financial stability, came under fire when Northern Rock ran into trouble in 2007, causing chaos as its customers queued up to withdraw their savings.

Gieve is concerned that a little further north from Northern Rock’s Newcastle headquarters, in Scotland, a similar situation could re-occur.

With tomorrow’s independence referendum looming large, the City is watching developments carefully.

Gieve hopes his former employers work with banks to make sure ATMs are full and that internet banking systems do not fall flat if panic enters the market when the result is announced come Friday.

Elsewhere, technology giant Sony today issued a huge profit warning – admitting losses will total around £1 billion – after customers were switched off by its smartphone offer.

Sources also say that overseas networks have joined the race to buy up some of collapsed retailer Phones 4U’s stores, with EE and Vodafone still the frontrunners.

The situation remains unclear for its 5,600 staff, who hope their employer doesn’t hang up on them just yet.

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