Duran Duran have been caught up in a spending row involving one of the banks at the centre of the ongoing global financial crisis, Lloyds TSB.

The band are understood to have performed for the bank's employees at a £2million private party which took place recently at various venues across London.

According to the Sun newspaper, 1000 members of staff and partners stayed in four of the capital's finest hotels and were treated with trips to Harrods and the London Eye.

An organiser described the celebration as a “disgusting spectacle”.

“It’s the most extravagant corporate event I’ve ever seen,” they said. “There was little mention of the credit crunch as they filled their boots.

A spokesperson for Lloyds TSB, which was one of the banks bailed out yesterday by the Government, said the party was for non-management staff.

The Government's package for broken banks includes a cap on bonuses paid to management.