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After her death at 78 six years ago, the German agency switched tack and began pursuing the banks themselves. Julius Baer was sued for 135 million euros, with the reasoning that the Swiss wealth manager had done nothing to hinder Steindling from withdrawing the funds after the regime's collapse.

UBS Quarterbacking

Julius Baer itself didn't deal with Steindling: the 129-year-old bank got dumped with the problem in 2005, when it bought three private banks and asset manager GAM off UBS for $4.6 billion. The Swiss wealth giant apparently vouched for «representations and warranties» as part of the deal.

That means UBS is quarterbacking Julius Baer behind the scenes as the lawsuits wind their way through the court system, finews.com has learned. To be sure, the amicable relationship will sour if Julius Baer can't free itself of the claim in court: it will go after UBS for reimbursement.

Compounded Interest Woe

Both banks paid triple-digit million sums to Germany for helping hide untaxed assets. In UBS, no stranger to court drama itself, Julius Baer will have an opponent with deep pockets for a prolonged legal tussle.

The claim has already risen to more than $150 million due to compounded interest – and will keep rising the longer the legal battle continues. Bank Austria, another bank which welcomed «red Fini», eventually paid 254 million euros after a years-long battle – the original claim was for half that.

«She Knew Every Trick»

Seven years after her death in Tel Aviv, «red Fini» is likely to prompt Julius Baer and UBS turning from friends to foes. Steindling remains a deeply controversial figure: married to a Holocaust survivor, she is remembered as a generous donor by some.

Others, like former German Finance Minister Theo Waigel, whom she infuriated, are less charitable. «We didn't leave Fini Steindling alone even when she was an old woman,» he said after her death. «But she knew every trick.»