Media reports said the scandal is Germany's biggest post-war fraud involving a share-trading scheme that the authorities say cost taxpayers billions of euros.

German prosecutors have searched Morgan Stanley’s offices in the country in connection with “past activity,” media reports said today, citing a spokesperson from the US bank. 

Prosecutors have said they were searching a bank in Frankfurt as well as the private homes of two suspects in relation to the "cum-ex" tax fraud scandal, but they did not name which bank, Reuters said. The news service quoted a Morgan Stanley spokesperson as saying the bank was continuing to cooperate with German authorities.

"The investigation relates to historic activity and we are continuing to cooperate with the German authorities," a spokesperson told Family Wealth Report.

Prosecutors said the search was being conducted in particular to collect relevant emails and written correspondence.

Media reports said the scandal is Germany's biggest post-war fraud involving a share-trading scheme that the authorities say cost taxpayers billions of euros.

Reuters said that “a large number of banks” were involved in the cum-ex deals: In the past few weeks alone there have been raids on the German branches of Barclays and the investment bank Merrill Lynch.