European banking stocks are making a historic comeback. Spanish and Italian bank shares have been on fire lately, finally erasing all the damage from that brutal 2008 financial crisis. Think about it—17 years. That's how long it took for these equity benchmarks to claw their way back to pre-crisis levels. The rally signals renewed confidence in Southern European financials, a sector that got absolutely hammered during the sovereign debt turmoil. For traders watching regional banking exposure, this milestone marks a complete recovery cycle that many thought would never happen.