No way only 7 of 91 European banks could pass a real stress test. No way could only €3.5 billion in new capital be needed. When the US tested 19 banks a little while ago, 10 were found to be deficient, and $75 billion in new capital had to be raised. It's ok if everyone at MIT passes every test.
How could an MIT student not pass a test? At least and still stay a student at MIT for a cool gazillion dollars a year in tuition. Or at a lot of other places, I know, I know. Probably your school as well. But I don't think I know anyone who went to MIT, so I use it as the example. I personally found lots of tests to not pass. But then I survived and maybe the European banks will as well, but the announcement of the tests resultscaused the market to rally last Friday and that makes no sense to me.
The criteria to pass was that your Tier One capital would stay at 6% or better even under what the test called the most "adverse circumstance."