Michael Spencer has been told to raise his game after the firm was hit by an embarrassing £55m fine for its role in the Libor scandal. Leading institutional investors say they expect change at the inter-dealer broker, following the rebuke from UK and US regulators.
They found that brokers had colluded to fix yen Libor interest rates with UBS trader Tom Hayes.
Three former employees responsible for the misconduct have been charged in New York with conspiracy to commit fraud and wire fraud. Kiwi Darrell Read and Britons Daniel Wilkinson and Colin Goodman face up to 30 years in prison if convicted.
"As we all know, Libor pushed Bob Diamond over the edge and this could be seen in the same context," one leading fund manager said. Another added: "Let this be a lesson for other executives."
Spencer is furious about the behaviour of the traders. He said senior executives at the broker were unaware of the wrongdoing.