CLSA’s influential bank analyst, Brian Johnson, has said ANZ’s $3bn raise is insufficient and argued it needs to tap investors for up to $8bn to reach the ideal tier 1 core equity level. ANZ this morning became the latest bank to raise capital. But Mr Johnson said it was less than the market had been expecting. As a result domestic fund managers, who are underweight the sector, “will be in a slight panic to begin covering those underweight bets as the hope that they would be able to participate in big capital raisings has diminished.” He claimed another raising is now likely once the new CEO takes the reins in 9 months time. According to Mr Johnson, today’s $3bn deal is just a “small step to step to get them to where they need to be now in terms of capital” and predicted the next move will be early next year after ANZ’s current chief executive officer, Mike Smiith, exits and “APRA has issued even stricter capital requirements”. He also pointed out that ANZ has had its “hand forced due to the inability to sell some offshore businesses to raise capital, and problem exposures popping up in the australian resource space and New Zealand dairy space.”