It looks like 7 banks out of 91 that have been tested recently to see if they can survive, well they failed the so called stress test. 5 Spanish banks, 1 Greek and 1 German are named in the list of banks that looks like they will fold. They are Daida, Banca Civica, Unnim, Cajasur and Espiga all in Spain, ATEbank in Greece and Hypo Real Estate in Germany.
It is not surprising that the Spanish banks are named as their economy has suffered 20% unemployment rate and real estate has plunged. This news will probably put the banks out of business as their customers will probably transfer their financial assets to a larger bank fearing all their money will disappear.
It will most likely happen that these banks will be bought out or have to raise significant capital to stay afloat.