G20 doesn't buy the bank rally

From the bloomberg.com news page

A quote from the G20 meetings.

"Our key priority now is to address the value of assets held on banks’ balance sheets, which are constraining banks’ lending” and damaging economies, the G-20 statement said. Banks are still hoarding cash after being stung by more than $1.2 trillion of write downs and losses. Interbank lending rates this week rebounded to the highest level since Jan. 8."

I had mentioned the idea of pricing assets held on banks balance sheets in a blog called "there is always a market". The new bank rhetoric on profitability and solvency evidently didn't get to the G20 yet. Funny how we are told by the bankers that they are profitable yet the biggest issue at the G20 meetings is how the banks are hoarding cash and holding toxic assets while constricting their lending. It couldn't be that banks are selling the rosy picture to the government and the public because they are going come back for more money could it? Well hopefully not but things are not lining up properly. Two opposing views on what the major issues are with the banks. I guess we are supposed to trust the bankers again because they have seen the light.