Business
A Trump Oligarchy Is Moving to Washington, and Buying Up Prime Addresses
President Biden warned in his farewell address to the nation last week that an oligarchy is taking shape in America. In Washington, the oligarchs are already here, buying big houses.
Counting President-elect Donald J. Trump himself, there are at least a dozen billionaires among his cabinet picks and those headed for senior roles in the new administration. Elon Musk tops the list with a $429 billion net worth, according to Forbes, making him the world’s richest man. Mr. Trump weighs in with an estimated $6.8 billion.
It is an extraordinary concentration of wealth in a city where power has always been more important than money, but is now more than ever intertwined with it. Mr. Trump campaigned as a populist defender of the American working class, but he has put some of his richest donors in commanding roles in the top reaches of government. A number will oversee the very industries that produced their fortunes.
“It’s tempting to liken this to the Gilded Age, but John D. Rockefeller didn’t actually run McKinley’s campaign or move into the White House,” said Michael Waldman, who was President Bill Clinton’s chief speechwriter and is now president and chief executive of the Brennan Center for Justice, which promotes legal system reforms and works to curb money in politics. He was referring to Mr. Musk, who spent more than $250 million to help Mr. Trump win and is now expected to have an office in the White House complex.
One of the most immediate effects in Washington has been an explosion in the luxury real estate market.
The financier Howard Lutnick, Mr. Trump’s choice to be commerce secretary (worth $1.5 billion, according to Forbes), last month closed on the French Chateau-style home of the Fox anchor Bret Baier on Foxhall Road for $25 million, a record for the area. Scott Bessent, the nominee for Treasury secretary (his financial disclosure statement shows he is worth in excess of $700 million) has looked at a $7 million Federal-style house on N Street in Georgetown, once the home of the syndicated columnist Joseph Alsop.
The 1850 Italianate-style Georgetown home of the late Boyden Gray, an influential lawyer for Republican presidents, sold last month for $10.5 million. Real estate agents would not disclose the buyer, but they did say they were running short of trophy houses in Washington because of a second-term Trump bump.
“We’ve really been overwhelmed by the wealth factor that has come to Washington since the election,” said Jim Bell, an executive vice president of TTR Sotheby’s International Realty. He said agents have resorted to calling their Washington clients and asking if they’d be interested in selling to the newcomers.
The journalist and author Sally Quinn got one such call from an agent who told her she could get twice the price for the 18-room, 1790s Georgetown home she shared for more than 30 years with her husband, the late Benjamin C. Bradlee, the famed executive editor of The Washington Post. The house was once owned by Robert Todd Lincoln, Abraham Lincoln’s son.
Ms. Quinn said she was happy to get the call, but adamant: “I said, ‘Never.’ This is my home.”
It is unclear where Mr. Musk will live in Washington, although there are local media reports that he is trying to buy the Line Hotel in the buzzy, bar-heavy neighborhood of Adams Morgan and turn it into a private club. A spokeswoman for Mr. Musk, the Tesla founder whose rocket company, Space X, has billions of dollars in contracts with the federal government, did not respond to a request for comment.
Mr. Musk is expected to have an office in the Eisenhower Executive Building across from the White House as the co-leader of the unofficial Department of Government Efficiency. His partner in the effort is Vivek Ramaswamy, a pharmaceutical entrepreneur with a net worth of $1 billion, according to Forbes, who is also planning to run for governor of Ohio, a seat that becomes open in 2026.
Jonathan Taylor, a founder and managing partner of TTR Sotheby’s, said that the rich with connections to the administration, although not necessarily a part of it, are moving here too. “There are a lot of very wealthy people looking for a seat at the table,” he said.
That is hardly surprising, said David Rubenstein, the billionaire co-founder of the private equity Carlyle Group.
Big donors, he said, “would like to get the policies they believe in from the federal government — more oil drilling, easier antitrust policy, more favorable crypto policy, less bank oversight. They also want more support for helping American companies invest overseas, and have ready access to government officials.”
Washington housing, he said, was also a relative bargain for them. “If you want to buy a home in New York or Southampton, a really good house, it could cost $100 million to $150 million,” he said. “You can’t spend $25 million in Washington even if you try.”
Mr. Rubenstein, who served as deputy domestic policy adviser to President Jimmy Carter, said he looked at Mr. Baier’s house when it was on the market but decided to stay in the home in Bethesda, Md., where he has lived for decades. He also owns the sprawling compound in Nantucket that President Biden has used for his family Thanksgiving vacations.
Democrats have money too, although Mr. Biden’s Cabinet is largely filled with single- and double-digit millionaires. His current White House chief of staff, Jeffrey Zeints, listed assets ranging from $68 million to $338 million on his 2024 financial disclosure form. One outlier is Penny Pritzker, an heir to the Hyatt hotel fortune who was a commerce secretary for President Barack Obama and served as Mr. Biden’s special representative for Ukraine’s economic recovery. She has a current net worth of $4.1 billion, according to Forbes.
Mr. Trump’s billionaires have substantially bigger assets than those top officials who came to Washington for his first term, which was considered the wealthiest administration in American history at the time. Mr. Trump’s first secretary of state, Rex W. Tillerson, the former chief executive of ExxonMobil, had assets of between $289 million and $350 million in 2017. He lasted a little more than a year before Mr. Trump fired him by tweet.
Some tech billionaires, who moved here in part to have access to the White House and Congress as their industry came under growing government scrutiny, have been in Washington for years.
Jeff Bezos, the Amazon founder and owner of The Washington Post, paid $23 million in 2016 for the former 27,000-foot Textile Museum on a grand street in the Kalorama neighborhood. The Silicon Valley venture capitalist Peter Thiel, who donated more than $1 million to Mr. Trump in 2016, paid $13 million in 2021 for a home on Woodland Drive owned by Wilbur Ross, the secretary of commerce in Mr. Trump’s first term. Eric Schmidt, the former chief executive of Google, paid $15 million for the home across from Ms. Quinn on N Street, where Jacqueline Kennedy lived for a short time after her husband’s assassination in 1963.
“These are really rich people,” said Kara Swisher, a journalist who chronicles the tech industry and is a former opinion writer for The New York Times. “As much as they like to have an image of not being spendy, they’re all really spendy. They all have private planes, they all have assistants, they have people who get them the kind of nuts they want.”
Washington neighborhoods in high demand, real estate agents said, were Kalorama, Massachusetts Avenue Heights off the embassy-lined street of the same name, and Georgetown, whose cobblestone lanes were traditionally the preserve of Washington’s old-line elite. Not anymore, said Jamie Peva, a real estate agent with Washington Fine Properties who has sold houses in Georgetown for 33 years.
“That whole WASP hegemony that started to decline in the ’80s just continued to decline,” he said. “All of a sudden tech starts to come in. It’s a meritocracy.”
A few of the billionaires will presumably not need homes in Washington. Charles Kushner, a real estate executive whose companies are worth $2.9 billion, according to Forbes, is to live in Paris as the U.S. ambassador to France. Mr. Trump pardoned Mr. Kushner, a major donor to Mr. Trump’s 2024 campaign, in the last days of his first term. In 2004, Mr. Kushner pleaded guilty to tax evasion, retaliating against a federal witness and lying to the Federal Election Commission.
Warren Stephens, an investment banker worth $3.3 billion, according to Forbes, is to live in London as the U.S. ambassador to Britain. In 2016, Mr. Stephens gave $2 million to a group aiming to stop Mr. Trump from winning the Republican presidential nomination and in the 2024 primaries backed Republican candidates other than Mr. Trump. In April, after it became clear that Mr. Trump would be the Republican nominee, Mr. Stephens donated more than $3 million to his campaign.
Tilman Fertitta, the owner of the Houston Rockets and a longtime Republican donor who is worth $10.2 billion, according to Forbes, is set to live in Rome as the U.S. ambassador to Italy.
Eric Lipton contributed reporting.
Business
Supreme Court urged to block California laws requiring companies to disclose climate impacts
WASHINGTON — The U.S. Chamber of Commerce and other business groups urged the Supreme Court on Friday to block new California laws that will require thousands of companies to disclose their emissions and their impacts on climate change.
One of the laws is due to take effect on Jan. 1, and the emergency appeal asks the court to put it on hold temporarily.
Their lawyers argue the measures violate the 1st Amendment because the state would be forcing companies to speak on its preferred topic.
“In less than eight weeks, California will compel thousands of companies across the nation to speak on the deeply controversial topic of climate change,” they said in an appeal that also spoke for the California Chamber of Commerce and the Los Angeles County Business Federation.
They say the two new laws would require companies to disclose the “climate-related risks” they foresee and how their operations and emissions contribute to climate change.
“Both laws are part of California’s open campaign to force companies into the public debate on climate issues and pressure them to alter their behavior,” they said. Their aim, according to their sponsors, is to “make sure that the public actually knows who’s green and who isn’t.”
One law, Senate Bill 261, will require several thousand companies that do business in California to assess their “climate-related financial risk” and how they may reduce that risk. A second measure, SB 253, which applies to larger companies, requires them to assess and disclose their emissions and how their operations could affect the climate.
The appeal argues these laws amount to unconstitutional compelled speech.
“No state may violate 1st Amendment rights to set climate policy for the Nation. Compelled-speech laws are presumptively unconstitutional — especially where, as here, they dictate a value-laden script on a controversial subject such as climate change,” they argue.
Officials with the California Air Resources Board, whose chair Lauren Sanchez was named as defendant, said the agency does not comment on pending litigation.
The first-in-the-nation carbon disclosure laws were widely celebrated by environmental advocates at the time of their passage, with the nonprofit California Environmental Voters describing them as a “game-changer not just for our state but for the entire world.”
Sen. Scott Wiener (D-San Francisco), who authored SB 253, said at the time that the laws were “a simple but powerful tool in the fight to tackle climate change.”
“When corporations are transparent about the full scope of their emissions, they have the tools and incentives to tackle them,” Wiener said.
Michael Gerrard, a climate-change legal expert at Columbia University, described Friday’s motion as “the latest example of businesses and conservatives weaponizing the 1st Amendment.” He pointed to the Citizens United case, which said businesses have a free speech right to unlimited campaign contributions, as another example.
“Exxon tried and failed to use this argument in 2022 when it attempted to block an investigation by the Massachusetts Attorney General into whether it misled consumers and investors about the risks of climate change,” he said in an email. “Exxon claimed this investigation violated its First Amendment rights; the Massachusetts courts rejected this attempt.”
Under the Biden administration, the Securities and Exchange Commission adopted similar climate-change disclosure rules. Companies would have been required to disclose the impact of climate change on their business and what they intended to do to mitigate the risk.
But the Chamber of Commerce sued and won a lower court ruling that blocked those rules.
And in March, Trump appointees said the SEC would retreat and not defend the “costly and unnecessarily intrusive climate-change disclosure rules.”
The emergency appeal challenging California’s disclosure laws was filed by Washington attorney Eugene Scalia, a son of the late Justice Antonin Scalia.
The companies have tried and failed to persuade judges in California to block the measures. Exxon Mobil filed a suit in Sacramento, while the Chamber of Commerce sued in Los Angeles.
In August, U.S. District Judge Otis Wright II in Los Angeles refused to block the laws on the grounds they “regulate commercial speech,” which gets less protection under the 1st Amendment. He said businesses are routinely required to disclose financial data and factual information on their operations.
The business lawyers said they had appealed to the U.S. 9th Circuit Court of Appeals asking for an injunction, but no action has been taken.
Shortly after the chamber’s appeal was filed, state attorneys for Iowa and 24 other Republican-leaning states joined in support. They said they “strongly oppose this radical green speech mandate that California seeks to impose on companies.”
The justices are likely to ask for a response next week from California’s state attorneys before acting on the appeal.
Savage reported from Washington, D.C., Smith from Los Angeles.
Business
Warner Bros. Discovery modifies David Zaslav’s employment contract — again
Warner Bros. Discovery has modified Chief Executive David Zaslav’s contract for a second time this year to prepare for the company’s proposed breakup.
This month’s alterations were outlined in an SEC filing on Thursday — a week before initial bids are due in the Warner Bros. Discovery auction. Industry sources expect Paramount, Comcast and Netflix to make offers for the embattled entertainment company that owns HBO, CNN, Food Network and the storied Warner Bros. movie and television studios.
Warner Bros. Discovery declined to comment.
The sale kicked off in September when David Ellison-led Paramount made an unsolicited offer for Warner Bros. Discovery — a month after Ellison and RedBird Capital Partners had acquired Paramount from the Redstone family in an $8-billion deal. The company since has made at least three bids — but all were unanimously rejected by the Warner Bros. Discovery board, which viewed them as too low.
Paramount’s most recent solicitation for Warner Bros. Discovery was for $23.50 per share, which would value the company at about $58 billion.
The external jockeying for Warner Bros. Discovery set the stage for Zaslav and the Warner board to amend his employment agreement. The contract was revised Nov. 7 to clarify that various spin-off configurations would result in the same incentives for Zaslav.
Previously, his contract was amended to outline his compensation and incentives should the Warner Bros. studios and HBO Max spin off from the parent company, as envisioned when Warner announced its breakup plans in June. At the time, Zaslav planned to stay on to run the studios and streaming company, which would be called Warner Bros. in a nod to its historic roots and the pioneering days of the movie industry.
The plan was for the company’s two dozen cable networks, including CNN, TNT, Animal Planet and TLC, to remain behind and the company renamed Discovery Global.
The company is forging ahead with its breakup plans. However, it now plans to spin off the cable channels (Discovery Global) and keep the studios, HBO and the HBO Max streaming service as the surviving corporate entity (Warner Bros.).
“The amendment clarifies that if the separation is achieved by retaining Warner Bros. and spinning off Discovery Global (a ‘Reverse Spinoff’) rather than spinning off Warner Bros. … the Reverse Spinoff will be treated in the same manner … for all purposes of the Zaslav arrangements,” the filing said.
Previously, the company had envisioned that the split would be complete by Dec. 31, 2026. But a full-blown auction could upset those plans — and the transaction could close at a later date.
Zaslav’s contract was modified to extend his employment through December 2030. Previously, his contract was set to expire in December 2027.
“This extension is intended to secure Mr. Zaslav’s leadership of WBD for the same period that we had contracted to have him serve as the chief executive officer of Warner Bros. following a separation,” the filing said.
The Wall Street Journal was the first to report that nonbinding preliminary bids for the company are due Nov. 20.
Business
Economic angst forces L.A. shoppers to find ways to spend less for the holidays
Shoppers in Los Angeles are turning to more affordable brands, seeking deals and making their own presents to save money this holiday season, as many tighten their purse strings in anticipation of a weak economy.
The average projected holiday spend by Los Angeles shoppers was $1,627, according to Deloitte’s 2025 holiday retail survey. That’s above the national average but a 14% dip from 2024.
“What we’re hearing is that shoppers here in the L.A. metro area — and nationwide — are feeling uncertain about where the economy is headed,” said Rebecca Lohrey, Deloitte audit and assurance partner.
Californians have struggled more than residents of most other states with the stubbornly high price of housing. At the same time, the often-changing tariff regime coming out of Washington has consumers concerned that prices will continue to rise.
Widespread and high-profile job cuts in the tech industry, which has for decades been one of the state’s most reliable employers, have also helped shake consumer confidence. Some consumers surveyed by KPMG earlier in the year had planned to spend more this holiday season, in part, to get ahead of inflation.
Three-quarters of the shoppers surveyed expect higher prices on holiday goods, and 62% of Los Angeles shoppers expect the economy to weaken in the year ahead, nearly twice as many as a year earlier.
“L.A. shoppers are more likely to hunt for deals, give homemade gifts, reuse wrapping and use tools like social media and AI to plan their purchases,” Lohrey said. “Even with tighter budgets, they’re finding smart, creative ways to make the season joyful without overspending.”
Tariffs, inflation and geopolitical shifts are causing severe economic uncertainty for consumers.
Nationally, 57% of those surveyed expected the U.S. economy to weaken in the next six months, the most negative outlook since Deloitte started tracking economic sentiment in 1997.
This echoes what big box retailers and consumer goods giants have been saying. In August, Walmart said that as it replenishes inventory at tariff prices, it has continued to see costs increase each week, which it expects to continue through the end of the year. PepsiCo said it was introducing products at a cheaper price as consumer budgets remain constrained.
“Not surprisingly, we see more adjustments in middle- and lower-income households than we do with higher-income households,” Douglas McMillon, Walmart’s chief executive, said in an earnings call.
With consumers becoming more value-conscious, the Deloitte survey found that 88% of L.A. shoppers are seeking deals, and 78% are opting for affordable brands and retailers.
This has also meant that about 35% of L.A. shoppers plan on turning to generative AI tools to compare and find the best deals and generate shopping lists.
Consumer price inflation in Los Angeles stood at 3.5% in September compared with the previous year, higher than the national average of 3%, according to the Bureau of Labor Statistics.
With price increases, 6 in 10 local shoppers are turning to gift cards instead of gifts this holiday season, willing to spend an average of $268 on the cards.
Clothing and accessories are the top categories for those L.A. shoppers who say they’ll self-gift this year.
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