Mayo TD Ms Beverly Flynn has been expelled from the Fianna Fáil parliamentary party following a meeting in Leinster House this evening.
She was one of only two people to address the meeting on the motion to expel her from the parliamentary party, along with the Taosieach, Mr Ahern.
Ms Flynn told meeting that she had been singled out for unfair punishment and that she had been a junior official of the bank carrying our her employers' wishes.
The decision on the motion proposed by Mr Ahern to take the whip from Ms Flynn was accepted without a vote.
Afterwards Ms Flynn said she was gravely disappointed at the development. She had made the same arguments to her colleagues that she had been making publicly since the party decided to table the motion.
She accepted that her parliamentary colleagues felt that the sanction of withdrawing the whip was appropriate, and for that reason she had not lobbied any of them.
But Ms Flynn made it clear she would continue her fight at the meeting of the party's national executive on Friday by vigorously contesting the motion to expel her from the Fianna Fail as a whole.
Ms Flynn last week lost her appeal to the Supreme Court against a High Court finding that she had encouraged customers of National Irish Bank to evade tax. However, Ms Flynn has argued she was merely implementing the bank's policy at the time.
She has twice previously lost the party whip. The first time was in 1999 after she defied the party whip when the Dáil asked her father, Mr Pádraig Flynn, to clarify his position regarding the allegations made by the developer Mr Tom Gilmartin.
The second time came after her High Court action against RTÉ in 2001.