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Former San Fran Fed Employee Threatened To Murder Ex-FHFA Head Ed DeMarco

Tyler Durden's picture


When it comes to the San Francisco Fed, it is best known throughout the financial community as the group of crack economists who spend millions of taxpayer funds to investigate such probing, for kindergarteners at least, topics as: is water wet, do trees make a sound when they fall in the forest, is it still worth going to college, and are hedge funds important in a crisis. Little did we know that, at least some of them, are homicidal psychopaths with suicidal tendencies. Because this is precisely what was revealed moments ago when Bloomberg reported that the chief operating officer of the Federal Housing Finance Agency and 26-year San Fran Fed veteran, Richard Hornsby, is facing a felony charge for threatening to kill the agency’s former top official, Ed DeMarco, and then kill himself.

From Bloomberg:

Richard Hornsby last week threatened to shoot former FHFA Acting Director Edward J. DeMarco and then kill himself, according to an April 29 police report. DeMarco, who retired from the agency that regulates Fannie Mae and Freddie Mac  on April 30, was taken to a secure location while Hornsby was arrested.

The details of the charge against Hornsby can be found here.

So how did the FHFA COO nearly end up commiting a murder-suicide? Perhaps this had something to do with it: "Before joining FHFA, Hornsby worked for 26 years at the Federal Reserve Bank of San Francisco."

WSJ, which broke the story, has more:

Mr. Hornsby didn't respond to requests for comment, including messages left on a cellphone and a visit to his apartment. A woman who answered the phone at a California number associated with his name hung up when informed the caller was from The Wall Street Journal.


Mr. Hornsby allegedly threatened to shoot Mr. DeMarco after making "increasing threatening comments" about him over the course of several weeks, according to court records and Metropolitan Police Department report.


FHFA officials notified the agency's inspector general about the threats on April 28, after an incident in which Mr. DeMarco was "escorted to a secure location following a report of a threat," according to the court complaint used to secure the warrant for Hornsby. An FHFA employee, who wasn't named in the report filed in court, said Mr. Hornsby had threatened to harm Mr. DeMarco and to kill himself.


The incident occurred two days before Mr. DeMarco's previously announced retirement from the agency. The unnamed FHFA employee told the inspector general that the threats against Mr. DeMarco stemmed from disputes over Mr. Hornsby's job performance ratings, according to court documents. A spokeswoman for the inspector general declined to comment.

So where is this SF Fed veteran now? Why free to roam among the US population, where he belongs.

At a hearing in D.C. Superior Court last Wednesday, Judge Karen Howze issued the restraining order directing Mr. Hornsby to stay away from his workplace and from Mr. DeMarco, according to court documents. Mr. Hornsby, 58, was released without being required to post bond. Another hearing in the case is set for May 14.

At least he is away from the printer at the Marriner Eccles building, where another band of current Fed sociopaths are inflicting far greater damage on the country and its citizens.

And speaking of Fed, here is just what Hornsby activities was engaging in quietly at the Fed before his murderous rage finally bubbled up to the surface:

Hornsby served at the Federal Reserve Bank of San Francisco for 26 years, holding a variety of senior level management and banking supervision positions. Most recently, Hornsby was group VP and division head for the Reserve Bank’s Financial Planning and Control and Corporate Administration Divisions. In this position, he oversaw many of the Bank’s support functions in nine states. Prior to that, he served as group VP in charge of the Bank’s Portland Branch having responsibility for director relations, branch administration and business continuity. Hornsby also directed the Bank’s business development and customer support functions bankwide. He also served as a key member of the senior management team of the Federal Reserve’s National Support Function Office which provides electronic access to the Reserve’s financial services clients nationwide. In addition to his senior management positions, he was a Supervising Examiner in the Division of Banking Supervision and Regulation for 10 years, having regulatory responsibility for bank holding companies, banks and non-bank subsidiaries.

Which perhaps explains why five years after the "recovery" US banks are in such great shape they need some $2.7 trillion in Fed excess reserves to mask their insolvency.

Tangentially, some advice: don't haggle with that former Fed employee Ben Bernanke over his $250,000/hour speaking fee. He may be packing.

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Tue, 05/06/2014 - 19:41 | 4734098 ebworthen
ebworthen's picture

26 years of a cushy job, fat salary, and great benefits on the backs of taxpayers - and he wants to kill his boss then himself.

For some reason I have trouble feeling sorry for either one of them.

Tue, 05/06/2014 - 19:54 | 4734139 Arius
Arius's picture

the point is not about feeling sorry ... but why such a unheard of thing happened ????  indeed why???

may be just someone gone crazy ... it happens all the time

Tue, 05/06/2014 - 20:17 | 4734196 LetThemEatRand
LetThemEatRand's picture

Two things of which you can be certain:  1) there's more to this story, and 2) we'll never know the truth about it.  There will be a cover story to explain it, probably involving depression and medication or some such.

Sociopaths like this guy only go off when they're being backed into a corner.  Nobody puts banker baby in a corner.

Tue, 05/06/2014 - 20:28 | 4734232 knukles
knukles's picture

See, all that cheap money does distort shit.


This is why Malay370 was disappeared, by aliens, to keep our minds off of the real torments of the soul, for the body is all turned into stem cells, memories sold to beings existing on more mundane planets and the souls repackaged as toys in children's cereal boxes....  Or was I not supposed to talk about that?

Tue, 05/06/2014 - 21:04 | 4734359 old naughty
old naughty's picture

Awesome deep State thought stream. +1

Does any of that had to do with Balkans and Russia...Or was I not supposed to talk about that?

Tue, 05/06/2014 - 23:38 | 4734837 jeff montanye
jeff montanye's picture

yes, something like that.  this guy strikes me as at the awkward margin where the law for the commoners stops being enforced as the population stretches toward the elite.  what to do?  arrest him on charges but release him on no bail.  it was the best they could come up with.

Tue, 05/06/2014 - 20:25 | 4734235 Arius
Arius's picture

dont be so sure about the second ... if ZH articles and analysis about "housing recovery" are correct, pretty soon will be more casualties to come .... this aint Kansas any longer, we have long past the point of no return and if Amstrong is too be taken at his word the proverbial will hit the fan pretty soon ... better outsite than inside so to speak

Tue, 05/06/2014 - 20:23 | 4734221 American Dreams
American Dreams's picture

Indeed it does happen all the time but most that are labled "crazy" are predisposed to that particular position.  This is not even a scratch on ones temple if he was still employeed.  Hint.. hint.  They are all crazy and crazy is covered if you are still in the fold.  Leave said fold and you are just like the rest of us, subject the the laws that protect the rulers.  In my opinion he thought he still was above the law, like most all do in his position.  He was mistaken, because now that he has the "former" before his title he is fucked like the rest of us.

These are all American Dreams


Tue, 05/06/2014 - 20:41 | 4734249 Arius
Arius's picture

good points ... i do not think most people will ever get it ... they will buy whatever story will be told, but nothing new right///


what did Carlin say? got to be asleep to believe it ... thats one for the books

Wed, 05/07/2014 - 00:06 | 4734904 WillyGroper
WillyGroper's picture

That's simple.

DeMarco caught his wife with Horny, set divorce proceedings in motion and trying to reclaim his alpha dominance gave Horny a poor performance rating. This led to the closure of the revolving door in the private sector from which he so desperately wanted to retire on his newly commissioned phallic yaht. 

Wed, 05/07/2014 - 08:52 | 4735438 snodgrass
snodgrass's picture

Probably queer love gone wrong. It is San Francisco after all.

Tue, 05/06/2014 - 19:42 | 4734101 fonzannoon
fonzannoon's picture

these fed guys figured out the best defese is a good offense. Impressive

Tue, 05/06/2014 - 20:05 | 4734163 El Oregonian
El Oregonian's picture

Two questions: 1. Where's the nail gun? And 2. Has it been reloaded?

Tue, 05/06/2014 - 20:37 | 4734273 NoDebt
NoDebt's picture

I have the nail gun.  It is always loaded.  When it's pointed right at one's head and sufficient courage is finally summoned, the last thing you want to hear is "click" but no nail.  It just ruins the moment.


Tue, 05/06/2014 - 19:45 | 4734108 SHEEPFUKKER

He who kills first kills best. 

Tue, 05/06/2014 - 19:53 | 4734128 Arius
Arius's picture

whats the saying: shoot first, ask questions later ...  as Tuco famously stated: "you talk too much, if you are gone shoot just shoot dont talk"

Tue, 05/06/2014 - 23:49 | 4734865 Things that go bump
Things that go bump's picture

Stupid to make threats. He should have just kicked the cat. If one is going to do such a thing, it would be best not to broadcast it. It spoils the surprise. 

Tue, 05/06/2014 - 19:46 | 4734110 Ms. Erable
Ms. Erable's picture

Let him out on bail. Then give him a shot of whiskey, a gun, and two bullets.


Tue, 05/06/2014 - 19:57 | 4734147 hobopants
hobopants's picture

Is there a crime here somewhere? I don't see the problem...

Tue, 05/06/2014 - 19:47 | 4734113 Ralph Spoilsport
Ralph Spoilsport's picture

"Crack" economists. LOL

Tue, 05/06/2014 - 20:19 | 4734210 Vendetta
Vendetta's picture

So 90's. .... Should be 'methhed' economists

Tue, 05/06/2014 - 19:47 | 4734115 Raynja
Raynja's picture

hornsby heard he was getting a yellen promotion and decided death would be better

Tue, 05/06/2014 - 19:47 | 4734116 Kaiser Sousa
Kaiser Sousa's picture

bankers killing bankers...

only if it were....

Tue, 05/06/2014 - 19:49 | 4734121 stant
stant's picture

Yes a new urban legend

Tue, 05/06/2014 - 19:52 | 4734130 i_call_you_my_base
i_call_you_my_base's picture

I just envisioned a gladiator scenario with a lot of limp-wristed slapping.

Tue, 05/06/2014 - 23:51 | 4734871 Things that go bump
Things that go bump's picture

Thanks for the very amusing visual.

Wed, 05/07/2014 - 17:40 | 4737411 MeelionDollerBogus
MeelionDollerBogus's picture

That's why in the Bankster Games, where the margins are evah in your favahhhh we have sponsors to helpfully provide nail guns.

Tue, 05/06/2014 - 20:01 | 4734132 Joebloinvestor
Joebloinvestor's picture

Barny Frank and friends....


Yeah sure it was about an employee evaluation.

Tue, 05/06/2014 - 19:53 | 4734134 Cangaroo.TNT
Cangaroo.TNT's picture

Weird.  This is just like that song by Fugazi.

Tue, 05/06/2014 - 19:56 | 4734144 TheMeatTrapper
TheMeatTrapper's picture

Whose dumb idea was it to stop him?

Tue, 05/06/2014 - 19:58 | 4734151 Seasmoke
Seasmoke's picture

Demarco is a POS. Too bad he is all talk and no action.

Tue, 05/06/2014 - 20:00 | 4734155 vulcanraven
vulcanraven's picture

"When you have to shoot, shoot... don't talk.


Tue, 05/06/2014 - 20:07 | 4734162 One And Only
One And Only's picture

Harpies threatens Lamia with death.

Tue, 05/06/2014 - 20:07 | 4734175 The Gooch
The Gooch's picture

All roads lead to Jekyll.

Tue, 05/06/2014 - 20:31 | 4734256 knukles
knukles's picture

Island or Hecklel?

Tue, 05/06/2014 - 20:38 | 4734283 The Gooch
The Gooch's picture


Tue, 05/06/2014 - 20:47 | 4734296 Ralph Spoilsport
Ralph Spoilsport's picture

Heckle was the one with the New York City accent. Jeckle sounded like John Maynard Keynes so it was prolly him.


Tue, 05/06/2014 - 20:07 | 4734179 Yen Cross
Yen Cross's picture

     The article says the judge released Hornsby without bail. (he's under restraining order) Maybe we get lucky and get a shootout at the S.F. Fed. Corral.

Tue, 05/06/2014 - 20:12 | 4734184 hobopants
hobopants's picture

Lol gives new meaning to 'A Fistful of Dollars" for sure.

Tue, 05/06/2014 - 20:18 | 4734208 One of We
One of We's picture

My sons (6 and 4) can tell a spruce from a hemlock, a king from a coho, can hit the end of a pop can at 50 yds with a .22 (on bench rest) and the 6 year old can start a campfire 9 times out of 10 with one match.  They can discern  salt water from fresh by smell and are well aware of its wettness, have heard lots of trees fall in the forest, know it is foolish to go to college, but don't know what a hedge fund is and don't care.


Tue, 05/06/2014 - 20:30 | 4734244 bjfish
bjfish's picture

half the ZHer's wouldnt know a king from a coho.  You must be Alaskan?  or Pacific NW?   I used to seine & long-line out of Cordova (class of 84).

I'll share some fishing wisdom:  

               'Its all pink on the inside'

               'fuck 'em & feed 'em fish'

Buy why 'one of we' ... sounds like the Borg

Wed, 05/07/2014 - 04:08 | 4735144 One of We
One of We's picture

Would never say if I didn't figure drones were already circling but yes an Alaskan and one of we the people preferring the southeast archipelago for now. 

Tue, 05/06/2014 - 20:30 | 4734248 The Gooch
The Gooch's picture

7 is a good age to introduce the art of guillotine and it's many applictions.


Tue, 05/06/2014 - 20:32 | 4734259 knukles
knukles's picture

Great stuff to begin with 1/8 scale models and use them to chop hot dogs up for Beans and Franks.

Wed, 05/07/2014 - 04:00 | 4735140 One of We
One of We's picture

Around here crab pots tend to get set without buoys now and again.  I've also heard of special rascals holding tight to large rocks at low tide and high tide too I guess.....

Tue, 05/06/2014 - 21:24 | 4734439 icanhasbailout
icanhasbailout's picture

murder-suicide would have been a much cleaner resolution to the situation

Tue, 05/06/2014 - 22:47 | 4734703 cobra1650
cobra1650's picture

they were pole smokers, fucking each other on tax payer dime...so obvious

Tue, 05/06/2014 - 22:57 | 4734731 kchrisc
kchrisc's picture

"...that the chief operating officer of the Federal Housing Finance Agency and 26-year San Fran Fed veteran, Richard Hornsby, is facing a felony charge for threatening to kill the agency’s former top official, Ed DeMarco, and then kill himself."

May just be me, but I fail to see how that is bad.


"Maybe Fred would like to borrow my guillotine."

Tue, 05/06/2014 - 23:45 | 4734855 yogibear
yogibear's picture

Wait until bailout round #2 comes.

Wed, 05/07/2014 - 00:26 | 4734931 Tachyon5321
Tachyon5321's picture



San Francisco is the home of the fruit salad. 

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