Heat 2 tablespoons oil in heavy medium skillet over medium heat. Add sliced garlic, red pepper, and bay leaf. Stir until fragrant, about 1 minute. Add shallots and sauté until just translucent, about 2 minutes. Remove from heat; stir in parsley, olives, and vinegar. Add 1 tablespoon water. Add more water by teaspoonfuls to thin as needed. Season chimichurri with salt and pepper.
Rub steaks with 1 tablespoon oil and pressed garlic. Sprinkle both sides of each steak with 1/2 teaspoon paprika, 1/4 teaspoon coarse salt, cayenne, and generous amount of black pepper. Let stand at room temperature 30 minutes or up to 2 hours.
Brush heavy very large skillet (preferably cast-iron) with oil. Heat over high heat until almost smoking. Add steaks. Cook until browned, about 3 minutes per side. Cook until instant-read thermometer inserted horizontally into steaks registers 120°F to 125°F for medium- rare.
Let steaks rest 5 minutes. Thinly slice crosswise. Spoon chimichurri over steaks.