Bank of America and Citigroup Return to 2007: Reason for Joy or Fear?

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For investors in banks like Bank of America and Citigroup , the phrase "a return to 2007" may make their skin crawl.

The current low cost of "credit default swaps" -- insurance against a debt default --  for the biggest Wall Street banks suggests a renewed sense of confidence in the banking sector. Does this reflect a return to the irrational pre-crisis exuberance? Or just satisfaction with the banks' recent recapitalization?

In the following video, Motley Fool financial sector analysts Matt Koppenheffer and David Hanson discuss what this means for banking stocks.


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The article Bank of America and Citigroup Return to 2007: Reason for Joy or Fear? originally appeared on Fool.com.

David Hanson has no position in any stocks mentioned. Matt Koppenheffer owns shares of Bank of America and Citigroup. The Motley Fool recommends Bank of America. The Motley Fool owns shares of Bank of America and Citigroup. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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