Bankers went on a million-dollar all-expenses paid trip to an exclusive Italian resort on Thursday as markets crashed worldwide.

The guests are expected to dine at a lavish banquet at the fabulous Villa Erba, beside Lake Como.

The Sun newspaper even had details of the menu for the Barclays event: Fresh ravioli, beef fillet, dessert, coffee and biscuits, plus fine wines costing hundreds of pounds per case.

Participants will also be treated to an evening of music by Milan's famous Scala opera house, it said.

Guests are thought to be staying at Lake Como's luxury Villa D'Este hotel.

The Sun said even Barclays staff admitted the event sent the wrong message.

One source said: 'These client bashes are real luxury affairs - no expense is spared. Given the current climate, it has really got up everyone's noses that this one is going ahead.'

But a Barclays Wealth spokesman told TheTelegraph that cancelling the event would have been counter-productive.

She said: 'It would not make sense for a bank to sit on the sidelines now that relations with investors are crucially important.

'We are having a client conference in relation to financial planning and investment planning.

'These guys are doing their jobs, and their job is to advise their clients. You can't just shut down.'

'For financial system's sake'

She said encouraging their richest clients to make investments would help boost liquidity in the market and oil the wheels of the financial system.

She also said the trip was 'not all expenses-paid', but was unable to say what amount guests would have to pay.

The conference was titled: End of the World or Opportunity of a Lifetime?, and it was to advise clients on how to profit from the current financial misery, reported TheSun.

It quoted an unnamed banker as saying: 'No expense has been spared. Does anyone feel guilty? Not at all. It's business as usual.'

This trip follows a similar trip for 23employees from Barclays Private Equity who enjoyed a sunshine break at a £1,800-a-night hotel in the French Riviera.

Troubled US firm splurges

On Tuesday, insurance giant AIG drew fire in Washington for spending US$200,000 (about $300,000) on hotel rooms and US$23,000 on spa services at an event just days after it got the emergency loan from the government to avoid bankruptcy.

Lawmakers grilled former top executives at a hearing and Representative Elijah Cummings, a Maryland Democrat, said: 'They were getting facials, manicures and massages, while the American people were footing the bill.'

AIG said on Wednesday that the 'business event,' hosted by one of its subsidiaries, was forindependent life insurance agents, reported Reuters.

It said the event had been planned 'months before' it received the loan last month and thatno AIG executives from headquarters had attended.

AIG's attempt to correct the record came after White House spokesman Dana Perino used the word 'despicable' on Wednesday when asked about the AIG event.

'I understand why the American people would be outraged,' she said at a White House briefing. 'It's pretty despicable, to realise how callous somebody might be.'

AIG said current chief executive Edward Liddy had written to Treasury Secretary Henry Paulson to clarify the circumstances of the event.

The company said Mr Liddy assured MrPaulson that AIG now faces very different challenges, saying: 'We owe our employees and the American public new standards and approaches,' and that the company is 're-evaluating the costs of all aspects of our operations...'

AIG said that 10 employees from its subsidiary, AIG American General, attended the 100-guest event.

This article was first published in The New Paper on Oct 11, 2008.