Prosecutors Raid Morgan Stanley Offices In Germany – Media

Editorial Staff

3 May 2022

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.