THABO MBEKI. (AP/Wide World Photos. Reproduced by permission.)

The Conflict

In the aftermath of the Nazi rise to power in Germany in 1933 and eventual domination of Europe during World War II, thousands of Jewish Europeans opened bank accounts in Switzerland to protect their assets. In addition, the Nazis themselves deposited looted assets from conquered nations and individuals into Swiss banks. After World War II many of these accounts were retained by the banks as heirless assets, while others were liquidated to provide for Swiss property claims in Poland and Hungary. The Swiss also paid a fraction of the Nazi deposits in reparations to the Allied powers, while retaining most of the estimated $400 million in deposits that the Nazis funneled through their country during the course of the...