|The main reason why your fellow manager has not given up her malicious "hobby" is that your boss has gone ostrich on the entire matter. And further, his lack of action is actually condoning her trashing tendencies. The fact that "Everyone knows her" indicates that she is a real problem, while the fact that he is doing nothing about it indicates that he is a real problem too.|
Although you have probably met with your abusive colleague, it may be worthwhile to approach her again in a more assertive mode. Give her specific examples of the unacceptable comments, let her know how upset you are, tell her that the behavior has to stop now, and then indicate that you plan to take more serious action if it persists.
Unless you see an immediate improvement, you should have the same assertive discussion with your manager, and let him know that you will approach more senior levels of management if necessary. Be sure that he understands how distressing you find this harassment to be, adding that you hope the matter can be resolved within the organization. If that does not pull his head out of the sand, you should take the issue up to the next managerial level. Unless the entire organization is out to lunch, there will be someone who understands the potential costs and liability associated with your colleague's "hobby."