For investors in banks like Bank of America (NYSE:BAC) and Citigroup (NYSE:C), 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.