REPORT: 11 Banks Are About To Fail Europe's Biggest Ever Stress Tests

Spanish news wire EFE says that that at least 11 of the 130 banks the European Central Bank is now in charge of testing have failed their reviews. That's across six countries.

Three of the banks are Greek, three are Italian, Two are Austrian, one is in Cyprus, one is Belgian and one is Portuguese, according to the report.

It definitely looks like there was a market reaction: here's the euro falling against the dollar just as the report broke at 3.46 a.m. ET.

Full results on the stress tests are out this Sunday, deliberately timed out of market hours.

The stakes on the asset quality review, as the tests are formally known, are huge. Capital Economics' Jessica Hinds explains here (emphasis hers):

Given that previous stress tests failed to expose serious problems in a number of key financial institutions - some were given a clean bill of health only to need rescuing just months later - there is a lot at stake, not least the ECB's reputation and confidence in the entire euro-zone banking sector.