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Deutsche Bank also said in a statement it expected to be charged by the CDPP and the Australian Competition and Consumer Commission over the share placement, in which it was joint underwriter alongside Citigroup and JP Morgan. "Deutsche Bank intends to vigorously defend those charges," it said.

Citigroup also said it expected charges, which it too would "vigorously defend." It said in a statement the action was about a "highly technical" part of the law that had not previously been addressed in guidance notes.

"The allegations involve an area of financial markets activity that has not been considered by any Australian court or addressed in any regulatory guidance notes previously published by the ACCC or the Australian Securities and Investments Commission (ASIC). This is a highly technical area and if the ACCC believes there are matters to address, these should be clarified by law or regulation or consultation," Citigroup said.

Citi said the ACCC was alleging the joint underwriters reached an "understanding" over the disposal of less than 1 per cent of ANZ's shares.

"Any such allegation should be considered in the context that ANZ’s shares are bought and sold freely by thousands of shareholders in volumes representing hundreds of millions of dollars every business day, including for the period in question," Citi said.

'Very serious matters'

When a company raises capital by issuing shares, investments banks or brokers typically act as "underwriters," which means they guarantee some proportion of shares will be bought at a certain price. Citi maintained that Citi and its employees acted "with integrity" in the transaction, in which ANZ raised equity capital.

Treasurer Scott Morrison said he had been briefed on the matter, and the allegations would be tested through the proper process.

"These are very serious matters, and it's the product of an ACCC investigation,  but given the nature of that and where it stands it would be inappropriate for me to offer comment than that," Mr Morrison said in Sydney.

ANZ said the action against it related to an "arrangement or understanding" allegedly made between the joint lead managers in relation to the supply of ANZ shares.

The proceedings follow an investigation by the Australian Competition and Consumer Commission. The watchdog confirmed criminal charges were likely to be laid against ANZ Bank, Deutsche Bank and another company, as well as a "number of indiviuals".

“The charges will involve alleged cartel arrangements relating to trading in ANZ shares following an ANZ institutional share placement in August 2015,” ACCC chairman Rod Sims said. “It will be alleged that ANZ and the individuals were knowingly concerned in some or all of the conduct.”

ANZ also said on Friday morning it was cooperating with an investigation by the Australian Securities and Investments Commission over the placement of about 80.8 million shares in the bank.

ANZ said ASIC was investigating whether ANZ's announcement at the completion of the raising should have said the joint lead managers took up about 25.5 million shares, which was equal to 0.91 per cent of shares on issue at that time.

An ASIC spokesman confirmed the sharemarket regulator's involvement in aspects of the investigation, but declined to comment further.

More to come