Why are banks trading so low?

I need a permabear to remind me why banks are trading at such huge discount to book value.

1. The ECB put a floor on contagion.

2. US housing has bottomed.

Future earnings maybe weak for a few months, if not years, but what does the earnings story have to do with a group of stocks trading 20% below book value?

With the above in place, book value is not going lower.