Northern Rock managers partied in Spain as customers feared the worst

As the bank hovered close to collapse, a dozen of its key employees were checking into the five-star Villa Padierna Ritz Carlton hotel in Marbella.

The four-day trip, paid for by the bank, started on Friday, September 14, and was a reward for managers who had hit their mortgage sales targets earlier in the year.

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The bank's credit crisis only started to abate on September 17 when Chancellor Alistair Darling announced that the Government would guarantee all deposits held at the bank.

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By that time, the Northern Rock team, which included Francis Mogg, an operational director who acted as a media spokesman for the bank on mortgage matters, and Ralph Punter, an assistant director, had just finished sunning themselves on the Costa del Sol.

Mr Punter, 40, whose Friends Reunited entry records that he 'drinks a lot', was true to his word during his stay at the £160-a-night hotel.

Over three days, he ran up a personal drinks bill of £104. He also paid for a 40-minute manicure at a cost of £31.

The 122-room Tuscan-style building is surrounded by two 18-hole golf courses. Its grounds are dotted with apple and palm trees and grape vines.

Even though the bank's share price had been slashed by a third, Mr Punter, a married father-of-two, spent the Friday evening of their arrival sipping wine on the terrace of the hotel's La Loggia restaurant, overlooking the Mediterranean.

Mr Mogg, who lives in a large terrace house in the exclusive area of Jesmond, Newcastle-upon-Tyne, stayed in a £160-a-night superior first-floor room, with a king-size bed covered with luxury cotton sheets.

On the morning of September 15, he woke up to a £23 cooked breakfast delivered to his room – which he ate outside on his sun terrace while looking out across the Mediterranean.

The next day he opted for continental breakfast and later ordered a £37.65 bottle of white wine from room service.

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Meanwhile Northern Rock was drafting in extra staff to cope with calls from worried customers amid mounting speculation that the bank would be sold.

His colleague Mr Punter ran up an extras bill of £162 during the trip, including £104.65 on beverages.

A source at the hotel said: 'The group enjoyed every luxury we have to offer during their trip.

'We pride ourselves on being one of the most beautiful and accommodating hotels in Spain. We offer fine food, fine wine and luxury surroundings.'

Experts say the crisis has damaged the reputations of both Mr Darling and Mervyn King, the Governor of the Bank of England.

Northern Rock was forced to borrow more than £3billion of taxpayers' money from the bank to ease its credit crisis.

Mr Punter, who lives with his family in a £250,000 semi-detached bungalow in Rainham, Essex, was leaving to play golf when approached by The Mail on Sunday yesterday.

Asked to discuss the trip to Marbella, he said: 'I have got nothing to say to you. I am trying to sort my family out thank you.'

A Northern Rock spokeswoman said: 'This was a small sales-team event which was booked and paid for in advance.

'To suggest that this says anything about our commitment to customers or the hard work of all our staff in responding to these unprecedented events is grossly misleading.

'Our board, senior managers, call centre and branch staff have all spent the past week putting our customers' needs first.'

She later added that Mr Punter had contacted the company to say that he had paid for the bar bill and manicure out of his own pocket.

George Mudie, a Labour member of the Commons Treasury Committee who led the grilling of Mr King over the crisis last week, described the jaunt's timing as 'unfortunate'.

He said: 'Many elderly people who queued for hours outside their branches will find it unacceptable.'