Westpac is considering taking on the corporate watchdog after it filed proceedings in the Federal Court alleging the bank’s interest rate traders engaged in insider trading ahead of the monster $16 billion Ausgrid privatisation in October 2016.

The Sydney based lender – which has been battered and bruised after years of rolling scandals – was hit by Wednesday’s civil proceedings just days after chief executive Peter King won the sharemarket over with his plan to streamline the bank.