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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

SCHEDULE 13G

Under the Securities Exchange Act of 1934
(Amendment No. )*

GUARANTY FINANCIAL GROUP INC.

(Name of Issuer)

Common Stock, par value $1.00 per share

(Title of Class of Securities)

40108N106

(CUSIP Number)

January 9, 2008

(Date of Event Which Requires Filing of this Statement)

Check the appropriate box to designate the rule pursuant to which this Schedule is filed:

     o Rule 13d-1(b)

     þ Rule 13d-1(c)

     o Rule 13d-1(d)

* The remainder of this cover page shall be filled out for a reporting person’s initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter the disclosures provided in a prior cover page.

The information required in the remainder of this cover page shall not be deemed to be “filed” for the purpose of Section 18 of the Securities Exchange Act of 1934 (“Act”) or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however, see the Notes).

CUSIP No. 40108N106 

1	NAMES OF REPORTING PERSONS GREENLIGHT CAPITAL, L.L.C.
2	CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)
	(a)   o
	(b)   o
3	SEC USE ONLY
4	CITIZENSHIP OR PLACE OF ORGANIZATION
	DELAWARE
		5	SOLE VOTING POWER
NUMBER OF			1,175,327
SHARES		6	SHARED VOTING POWER
BENEFICIALLY
OWNED BY			0
EACH		7	SOLE DISPOSITIVE POWER
REPORTING
PERSON			1,175,327
WITH:		8	SHARED DISPOSITIVE POWER
			0
9	AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
	1,175,327
10	CHECK IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS)
	o
11	PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)
	3.3%*
12	TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
	OO

* See Item 4(b)

CUSIP No. 40108N106 

1	NAMES OF REPORTING PERSONS GREENLIGHT CAPITAL, INC.
2	CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)
	(a)   o
	(b)   o
3	SEC USE ONLY
4	CITIZENSHIP OR PLACE OF ORGANIZATION
	DELAWARE
		5	SOLE VOTING POWER
NUMBER OF			1,338,347
SHARES		6	SHARED VOTING POWER
BENEFICIALLY
OWNED BY			0
EACH		7	SOLE DISPOSITIVE POWER
REPORTING
PERSON			1,338,347
WITH:		8	SHARED DISPOSITIVE POWER
			0
9	AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
	1,338,347
10	CHECK IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS)
	o
11	PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)
	3.8%*
12	TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
	CO

* See Item 4(b)

CUSIP No. 40108N106 

1	NAMES OF REPORTING PERSONS DME ADVISORS, L.P.
2	CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)
	(a)   o
	(b)   o
3	SEC USE ONLY
4	CITIZENSHIP OR PLACE OF ORGANIZATION
	DELAWARE
		5	SOLE VOTING POWER
NUMBER OF			364,871
SHARES		6	SHARED VOTING POWER
BENEFICIALLY
OWNED BY			0
EACH		7	SOLE DISPOSITIVE POWER
REPORTING
PERSON			364,871
WITH:		8	SHARED DISPOSITIVE POWER
			0
9	AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
	364,871
10	CHECK IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS)
	o
11	PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)
	1.0%*
12	TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
	PN

* See Item 4(b)

CUSIP No. 40108N106 

1	NAMES OF REPORTING PERSONS DME ADVISORS GP, L.L.C.
2	CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)
	(a)   o
	(b)   o
3	SEC USE ONLY
4	CITIZENSHIP OR PLACE OF ORGANIZATION
	DELAWARE
		5	SOLE VOTING POWER
NUMBER OF			364,871
SHARES		6	SHARED VOTING POWER
BENEFICIALLY
OWNED BY			0
EACH		7	SOLE DISPOSITIVE POWER
REPORTING
PERSON			364,871
WITH:		8	SHARED DISPOSITIVE POWER
			0
9	AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
	364,871
10	CHECK IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS)
	o
11	PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)
	1.0%*
12	TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
	OO

* See Item 4(b)

CUSIP No. 40108N106 

1	NAMES OF REPORTING PERSONS DAVID EINHORN
2	CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)
	(a)   o
	(b)   o
3	SEC USE ONLY
4	CITIZENSHIP OR PLACE OF ORGANIZATION
	UNITED STATES
		5	SOLE VOTING POWER
NUMBER OF			2,878,545
SHARES		6	SHARED VOTING POWER
BENEFICIALLY
OWNED BY			0
EACH		7	SOLE DISPOSITIVE POWER
REPORTING
PERSON			2,878,545
WITH:		8	SHARED DISPOSITIVE POWER
			0
9	AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
	2,878,545
10	CHECK IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS)
	o
11	PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)
	8.1%*
12	TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
	IN

* See Item 4(b)

CUSIP No.: 40108N106 Schedule 13G

Item 1(a)	Name of Issuer:
	Guaranty Financial Group Inc. (the “Issuer”), a Delaware corporation.
Item 1(b)	Address of the Issuer’s Principal Executive Offices:
	1300 MoPac Expressway South
	Austin, Texas 78746
Item 2(a)	Name of Person Filing:

This statement is filed on behalf of each of the following persons (collectively, the “Reporting Persons”):

i) Greenlight Capital, L.L.C. (“Greenlight LLC”);

ii) Greenlight Capital, Inc. (“Greenlight Inc”);

iii) DME Advisors, L.P. (“Advisors”);

iv) DME Advisors GP, L.L.C. (“DME GP” and together with Greenlight LLC, Greenlight Inc and Advisors, “Greenlight”); and

v) Mr. David Einhorn (“Mr. Einhorn”).

This statement relates to shares of Common Stock (as defined herein) held for the account of (i) Greenlight Capital, L.P. (“Greenlight Fund”), (ii) Greenlight Capital Qualified, L.P. (“Greenlight Qualified”), (iii) Greenlight Capital Offshore, Ltd. (“Greenlight Offshore”), and (iv) the managed account for which Advisors acts as investment manager.

Greenlight LLC is the general partner of Greenlight Fund and Greenlight Qualified. Greenlight Inc acts as the investment advisor for Greenlight Offshore. Advisors serves as investment manager to a managed account. DME GP serves as the general partner of Advisors. Mr. Einhorn is the principal of Greenlight.

Item 2(b)      Address of Principal Business Office or, if None, Residence:

The principal business office of each of the Reporting Persons is 140 East 45th Street, 24th Floor, New York, New York 10017.

Item 2(c)      Citizenship:

i) Greenlight LLC is a Delaware limited liability company;

ii) Greenlight Inc is a Delaware corporation;

iii) Advisors is a Delaware limited partnership;

iv) DME GP is a Delaware limited liability company; and

v) Mr. Einhorn is a United States citizen.

CUSIP No.: 40108N106 Schedule 13G

Item 2(d)	Title of Class of Securities:
	Common Stock, par value $1.00 per share (“Common Stock”).
Item 2(e)	CUSIP Number:
	40108N106
Item 3.	If this statement is filed pursuant to Rule 13d-1(b), or 13d-2(b) or (c), check whether the person filing is a:
	This Item 3 is not applicable.
Item 4.	Ownership:
Item 4(a)	Amount Beneficially Owned:

As of the date of this filing, each of the Reporting Persons may be deemed to be the beneficial owner of the following number of shares of Common Stock:

i)	Greenlight LLC may be deemed the beneficial owner of 1,175,327 shares of Common Stock held for the account of Greenlight Fund and Greenlight Qualified.
ii)	Greenlight Inc may be deemed the beneficial owner of 1,338,347 shares of Common Stock held for the account of Greenlight Offshore.
iii)	Advisors may be deemed the beneficial owner of 364,871 shares of Common Stock held for the account of the managed account for which Advisors acts as investment manager.
iv)	DME GP may be deemed the beneficial owner of 364,871 shares of Common Stock held for the account of the managed account for which Advisors acts as investment manager.
v)	Mr. Einhorn may be deemed the beneficial owner of 2,878,545 shares of Common Stock. This number consists of: (A) 1,175,327 shares of Common Stock held for the account of Greenlight Fund and Greenlight Qualified, (B) 1,338,347 shares of Common Stock held for the account of Greenlight Offshore, and (C) 364,871 shares of Common Stock held for the account of the managed account for which Advisors acts as investment manager.

The filing of this Schedule 13G shall not be construed as an admission that any of the Reporting Persons is for the purposes of Section 13(d) or 13(g) of the Securities Exchange Act of 1934, the beneficial owner of any of the shares of Common Stock owned by Greenlight Fund, Greenlight Qualified, Greenlight Offshore or any managed account managed by Advisors. Pursuant to Rule 13d-4, each of the Reporting Persons disclaims all such beneficial ownership.

CUSIP No.: 40108N106 Schedule 13G

Item 4 (b) Percent of Class:

The information set forth in Rows 5 through 11 of the cover page for each Reporting Person is hereby incorporated by reference into this Item 4(b) for each such Reporting Person. The denominator for determining the percentage of shares of Common Stock held by each of the Reporting Persons was 35,357,000, which is the number of shares of Common Stock outstanding according to the Information Statement made an exhibit to the Form 8-K filed by the Issuer on December 14, 2007 with the Securities and Exchange Commission.

Item 4 (c) Number of shares as to which each such person has voting and dispositive power:

The information set forth in Rows 5 through 11 of the cover page for each Reporting Person is hereby incorporated by reference into this Item 4(c) for each such Reporting Person.

Item 5.	Ownership of Five Percent or Less of a Class:
	This Item 5 is not applicable.
Item 6.	Ownership of More than Five Percent on Behalf of Another Person:
	This Item 6 is not applicable.
Item 7.	Identification and Classification of the Subsidiary Which Acquired the Security Being Reported on by the Parent Holding Company:
	This Item 7 is not applicable.
Item 8.	Identification and Classification of Members of the Group:
	This Item 8 is not applicable.
Item 9.	Notice of Dissolution of Group:
	This Item 9 is not applicable.
Item 10.	Certification:

By signing below, each of the Reporting Persons certifies that, to the best of his or its knowledge and belief, the securities referred to above were not acquired and are not held for the purpose of or with the effect of changing or influencing the control of the Issuer of the securities and were not acquired and are not held in connection with or as a participant in any transaction having that purpose or effect.

CUSIP No.: 40108N106 Schedule 13G

SIGNATURES

After reasonable inquiry and to the best of my knowledge and belief, the undersigned certifies that the information set forth in this statement is true, complete and correct.

Date: January 22, 2008	GREENLIGHT CAPITAL, L.L.C.
	By:	/s/ DANIEL ROITMAN
		Name:	Daniel Roitman
		Title:	Chief Operating Officer
	GREENLIGHT CAPITAL, INC.
	By:	/s/ DANIEL ROITMAN
		Name:	Daniel Roitman
		Title:	Chief Operating Officer
	DME ADVISORS, L.P.
	By:	DME Advisors GP, L.L.C.,
		its general partner
		By:	/s/ DANIEL ROITMAN
			Name: Daniel Roitman Title: Chief Operating Officer
	DME ADVISORS GP, L.L.C.,
	By:	/s/ DANIEL ROITMAN
	Name:	Daniel Roitman
	Title:	Chief Operating Officer
	/s/ DANIEL ROITMAN
	Daniel Roitman, on behalf of David Einhorn

The Power of Attorney, executed by David Einhorn authorizing Harry Brandler and Daniel Roitman to sign and file this Schedule 13G on David Einhorn’s behalf, which was filed with the Schedule 13G filed with the Securities and Exchange Commission on July 18, 2005, by the Reporting Persons with respect to the Ordinary Shares of Flamel Technologies S.A. is hereby incorporated by reference.

CUSIP No.: 40108N106 Schedule 13G

EXHIBIT INDEX

A. Joint Filing Agreement by and among Greenlight Capital, L.L.C, Greenlight Capital, Inc., DME Advisors, L.P., DME Advisors GP, L.L.C., and Mr. David Einhorn.

CUSIP No.: 40108N106 Schedule 13G

EXHIBIT 1

JOINT FILING AGREEMENT

In accordance with Rule 13d-1(k) under the Securities Exchange Act of 1934, as amended, the undersigned agree to the joint filing on behalf of each of them of a Statement on Schedule 13G (including any and all amendments thereto) with respect to the shares of Common Stock of Guaranty Financial Group Inc., and further agree that this Joint Filing Agreement shall be included as an Exhibit to such joint filings.

The undersigned further agree that each party hereto is responsible for the timely filing of such Statement on Schedule 13G and any amendments thereto, and for the accuracy and completeness of the information concerning such party contained therein; provided, however, that no party is responsible for the accuracy or completeness of the information concerning any other party, unless such party knows or has reason to believe that such information is inaccurate.

This Joint Filing Agreement may be signed in counterparts with the same effect as if the signature on each counterpart were upon the same instrument.

IN WITNESS WHEREOF, the undersigned have executed this Agreement as of January 22, 2008.

Greenlight Capital, L.L.C.
By:	/S/ DANIEL ROITMAN
	Daniel Roitman, Chief Operating Officer
Greenlight Capital, Inc.
By:	/S/ DANIEL ROITMAN
	Daniel Roitman, Chief Operating Officer
DME Advisors, L.P.
By:	DME Advisors GP, L.L.C.,
	its general partner
	By:	/S/ DANIEL ROITMAN
		Daniel Roitman, Chief Operating Officer
DME Advisors GP, L.L.C.
By:	/S/ DANIEL ROITMAN
	Daniel Roitman, Chief Operating Officer
/S/ DANIEL ROITMAN
Daniel Roitman, on behalf of David Einhorn