I do not say it is fair, because fairness is a relative term - no amount of money can possibly be fair under those circumstances

Judge Korman quoting Holocaust survivor

The deal, worth $1.25bn, was hammered out after a long campaign by the families.

It had already been agreed by the banks, but needed the judge's formal approval.

New York Judge Edward Korman used the words of a Holocaust survivor as he rubber-stamped the deal. "I have no quarrel with the settlement," Judge Korman quoted the survivor as saying.

"I do not say it is fair, because fairness is a relative term. No amount of money can possibly be fair under those circumstances."

Plundered

More than 50,000 separate accounts were believed to have been opened by holocaust victims in Switzerland.

But the deal also covers people whose assets were plundered by the Nazis and transferred to Switzerland later.

The banks agreed to settle the dispute after being threatened with sanctions by several US states.

Two of the largest banks - Credit Suisse and UBS - have since agreed to allow the claimants access to a database of 2.1 million accounts from the war years.

The move was designed to help speed up payments to victims.