Millennium Magazine_7th Ed

242 Millennium - A Marquis Who’s Who Magazine LAW AND LAW ENFORCEMENT time machine that made time travel possible in the movie “Back to the Future.” In this case, it makes the SPOE strategy possible. It is the insight that long-term bonds need to be junior to short-term debt so that losses can be imposed on long-term bondholders without being imposed pro-rata on short-term creditors. This allows the group’s losses to be absorbed by its private-sector investors without triggering a run on the bank by its short-term creditors. A run on the bank is a stampede by short-term creditors to withdraw all their money at once. Before joining Davis Polk, Mr. Guynn was a law clerk for Justice William H. Rehnquist of the U.S. Supreme Court. He graduated from the University of Virginia School of Law after receiving an economics degree with highest honors from Brigham Young University. He is married to Robin Quinn, and they are the proud parents of seven children. They are active members of the Church of Jesus Christ of Latter-day Saints. R andall David Guynn is a partner at Davis Polk & Wardwell LLP, a global law firm headquartered in New York City. He has been the head or co-head of Davis Polk’s Financial Institutions Group since 1994. He is widely recognized as one of the country’s top bank regulatory and M&A lawyers. His most important contribution to the legal field was his leading role in developing a workable solution to the too-big-to-fail problem. That problem refers to the inclination of government authorities to bail out certain banks if they become so large or complex that allowing them to fail might destabilize the financial system. Mr. Guynn’s solution has two parts. The first is known as the single-point-of-entry (SPOE) recapitalization within resolution strategy. The core feature of that strategy is pushing a banking group’s losses from its operating subsidiaries to its parent holding company. This results in recapitalizing the group’s operating subsidiaries and imposing their losses on the shareholders and long-term bondholders of its top-tier parent. The second part is what Mr. Guynn calls the “flux capacitor” – the component of Doc Brown’s RANDALL DAVID GUYNN CO-HEAD, FINANCIAL INSTITUTIONS GROUP Davis Polk & Wardwell LLP New York, NY