The European banking sector is facing fresh headwinds in Italy and now Spain. On Wednesday, an EU court ruled lenders had overcharged consumers on interest payments and must reimburse consumers. The reimbursements could total billions of euros. The news sent shares of Banco Popular Espanol (BPESY) and Banco de Sabadell (BNDSY) lower. This is the latest blow for the European banking sector. Earlier this week, Italy was weighing a 20 billion euro bailout for its banking sector.