Morgan Stanley executive investigated in Germany

German prosecutors say they've opened an investigation of the head of U.S. investment bank Morgan Stanley's German branch and a former German state governor in connection with the sale of shares in a local power company.

Prosecutors said Wednesday that both Dirk Notheis, who has been on indefinite leave from Morgan Stanley since last month, and former Baden-Wuerttemberg governor Steffen Mappus are being investigated on suspicion of breach of trust and accessory to breach of trust. Ten apartments and businesses were searched in eight cities, including Morgan Stanley's office in Frankfurt.

Morgan Stanley says it's cooperating with the investigation.

In 2010 Notheis helped his long-time friend Mappus, then governor, buy a 45 percent stake in EnBW on behalf of the state. A Parliamentary inquiry into the deal is ongoing.