Michael William Sunner, Ph.D. SUNNER & ASSOCIATES Michael William Sunner was a senior manager at Treasury for over 23 years and was responsible for overall compliance with Treasury’s auction program and risk management activities. Previously he was responsible for Treasury’s financing operations, which includes auctions and buybacks of Treasury marketable debt securities and operational oversight of the Federal Reserve’s “Fedwire Securities Service,” which issues, holds, maintains, transfers, and redeems Treasury marketable debt securities (i.e., the National Book-Entry System). He helped lead the Treasury-Federal Reserve Project Team that implemented Treasury’s Automated Auction Processing System (TAAPS) in 1993, and was the key person responsible for the codification of Treasury’s auction rules in that same year. He was project manager for Treasury’s Inflation-Indexed Securities, which were implemented in 1997, and he also was responsible for developing and implementing Treasury’s buy-back program and its comprehensive auction compliance program. He was the lead in the redesign and engineering of Treasury’s auction processes in order to implement a 2-minute auction, and has had management responsibility for Treasury’s systems development and design teams for over 15 years. These project groups developed, enabled, and deployed two separate versions of TAAPSLink (TL v1 and TL v2). The version TL v2, provided Primary Dealers access over a Virtual Private Network using frame relay, which supports a web-based browser bidding system and was used exclusively by Primary Dealers to submit bids for Treasury’s marketable debt auctions. This basic infrastructure is still used today with the current TAAPS, which was deployed after 5 years of design and development work on April 7, 2008. He led Treasury’s 2004 Auction Enhancement Project which involved changing Treasury’s pricing convention to 6-decimals in all auction automated systems, providing for negative yield bidding for TIPS, zero-filling rates/yields for all bids submitted with less than 3 decimals, and providing the news services with additional auction statistics electronically using XML technology. The project also implemented raising the noncompetitive bid and award limits for Treasury bills to $5 million. Michael has worked in various federal, state, and local government programs for over 30 years. He joined the Treasury in 1988, and he holds a Master's and Ph.D. in Political Science with specialties in Public Administration, Constitutional, International, and Public law. His doctoral dissertation topic was on Newsmen’s Privilege, and First Amendment rights. He has published several articles on debt collection and Treasury debt financing (1985-1995), and co-authored an article (1999) explaining the fungibility of Treasury interest payments for inflation-indexed securities (TIPS). In May 2004, he published an article on “Continuous Improvement in Treasury’s Debt Management Program.” His most recent publication was released in October 2007 in the Journal of Securities Compliance, Volume 1, Number 1, “U.S. Treasury Auction Compliance: How Dealer Visits are Conducted, What is Discussed and Treasury Expectations for Auction Participation.” He is currently working on a publication that takes the reader from the 1990’s Salomon debacle to present day Treasury auctions. Publication date is expected to be in March 2011. Over his years of service, he advised staff on improving Treasury’s automated auction systems especially with respect to managing operational risk, security, and regulatory compliance. As part of furtherance of a global risk management strategy, he established an additional Treasury auction contingency site in 2003, which is now fully operational. Dr. Sunner worked closely with the primary dealer community to ensure that auctions and settlement of Treasury securities would continue in the event of a major disaster event. Toward that end, he developed a Strategic Plan for Business Continuity, agreed to by the United States Treasury, the Federal Reserve Bank of New York, and 18 Primary Dealers. He was a regular speaker at industry conferences sponsored by SIFMA and the Global Investment Operations group. He also participated regularly on SIFMA’s Operations Committee. Dr. Sunner’s new book, Borrowing Through the U.S. Treasury’s “Fast Money Tree,” The Need to Balance Austerity and Growth in the 21st Century is available through Amazon and Borders.