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Global markets shuddered Monday after election results in France and Greece raised yet more questions and concerns about the future of the Eurozone. Major markets in Asia fell by more than 2% overnight, oil prices tumbled and equities in Europe and the U.S. headed south in the initial reaction to the voting, although declines were relatively modest in recent trading.

In France, Socialist candidate Francios Hollande defeated President Nicolas Sarkozy, the latest in a string of EU incumbents to be ousted amid voter anger and frustration. Hollande campaigned on a platform focused on reviving growth in the eurozone and against the austerity measures being promoted by Germany and the European Central Bank.

A breach between France and Germany would threaten the core of the European Union but Hollande's victory was predicted by the polls. At least for now, market participants seem much more concerned about election results in Greece where the two main

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The health of the financial system was one of the big items on the agenda at the Milken Institute Global Conference in LA last week.

In the accompanying video, I discuss the state of the banking industry - and bank regulations - with two renowned experts: Chicago Booth professor and former IMF chief economist Raghuram Rajan and James Barth, a senior fellow at Milken and co-author of Guardians of Finance.

The good news is Rajan, who presciently warned about a potential banking crisis in late 2005, believes the financial system is safer today for three main reasons:

• After being burned in 2008, banks have pulled back from risk-taking.
• Banks have more capital today vs. 5 years ago.
• New regulations, such as Dodd-Frank, "have the capacity of letting authorities do more than they used to be able to do."

Barth agrees, with one big caveat: "We don't yet know what the regulations are going to be," he says. "Not all the regulations have been put in

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The $1 trillion student loan crisis will be a top priority for President Obama and senior administration officials this week. The president will discuss ways to prevent undergraduate subsidized loans from doubling July 1 with student government leaders from across the country on Monday. Vice President Biden meets with students and higher education representatives about the skyrocketing costs of college later in the week and several high-ranking members of the Cabinet including Secretary of Labor Hilda Solis are expected to weigh in on the issue at various events planned by the administration.

The costs of attending college and the amount of outstanding student loan debt have become key issues in this election season. Both Obama and presumptive Republican presidential nominee Mitt Romney agree that the interest rate on government subsidized Stafford student loans should be extended for one more year. The 3.4 percent rate, which only applies to new student loans, was temporarily lowered in 2007 but will increase to 6.8 percent in less than two months. It costs the federal government about $6 billion a year to subsidize the interest rate. More than seven million students benefited from the reduced rate in the 2010-2011 school year and they could face an additional $2,800 in interest if the rate doubles.

Republicans have come under intense pressure to agree to a rate extension. Last month the House voted on a bill that would keep the rate unchanged for one more year and use savings from cuts to Obama's Affordable Care Act to pay for the subsidy. The bill will likely fail in the Democratic-controlled Senate and President Obama has already issued a veto threat. Democrats will vote May 8 on their bill that would extend Stafford loan rates by closing a tax loophole on wealthy Americans.