Ms Saunders led several high-profile deals

The German bank said Ms Saunders would step down from her position with effect from 31 December.

Ms Saunders had attracted widespread publicity from taking part in a string of refinancing and takeover deals.

But earlier this year the bank announced it was having to make big write-downs in the value of the investments her unit had made.

WestLB had to make large provisions against the financing of TV rental firm Boxclever, a deal which had been arranged by Ms Saunders' unit.

The provisions contributed to the bank's 1.7bn euro loss for 2002 and prompted the investigation by German regulator BaFin.

The losses also led to the departure of the bank's chief executive, Juergen Sengera.

High finance

Ms Saunders set up the principal finance unit at WestLB when she joined the bank in 1998.

In the light of WestLB's decision to change its strategic focus, I have decided to pursue my career elsewhere Robin Saunders

The unit specialised in securitisation deals, under which it would help businesses raise money by securing the debt against their future income.

It was involved in refinancing Bernie Ecclestone's Formula One, financing the rebuilding of Wembley stadium and backing entrepreneur Philip Green's bid for BHS.

But the provisions WestLB was forced to make for Boxclever led to the unit coming under greater scrutiny.

Earlier this month, German regulators asked WestLB to raise its bad-debt provisions for 2003 by 500m euros.

Restructuring

The bank is now looking to sell other assets that Ms Saunders' unit acquired and has already disposed of its stake in UK pubs firm Pubmaster.

"Our restructuring of the Principal Finance business is now well under way," said Dr Manfred Puffer, the managing board member of WestLB who has been responsible for Principal Finance since June 2003.

"I would like to thank Robin for her commitment to the business over the last five years. We wish her well in her future career," he added.

The bank gave no details of Ms Saunders' severance package.

"I believe there are many excellent opportunities out there to do business in the principal finance arena and in the light of WestLB's decision to change its strategic focus, I have decided to pursue my career elsewhere," Ms Saunders said in a statement.