Billionaire Caruso Looks to Spur California's Comeback From Wildfires

Summary

Bloomberg Businessweek Podcast Summary

Episode: Billionaire Caruso Looks to Spur California's Comeback From Wildfires
Date: October 13, 2025
Host(s): Carol Massar & Tim Stenovec
Guest: Rick Caruso, Founder & Executive Chairman of Caruso (Real Estate Developer, Former LA Mayoral Candidate)

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Episode Overview

This episode centers on Rick Caruso’s critical perspective on Los Angeles’ response to recent devastating wildfires, his ongoing conversations with Mayor Karen Bass, and his vision for California’s recovery and future competitiveness. The conversation also explores Caruso’s potential future in state or local government and his views on revitalizing California’s embattled entertainment industry. Through candid dialogue, the episode gives listeners inside access to the intersection of business, disaster recovery, politics, and culture in California.

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Key Discussion Points & Insights

1. Wildfires, Government Response & Accountability

Main Theme: Caruso offers a frank critique of LA’s preparedness and response to the catastrophic wildfires, referencing an After Action Report that details systemic failures.

• Government Failure:

  • Caruso asserts that the tragedy was preventable, pointing to “systematic failures” outlined in official reports.
  • Quote: “It’s very clear that this fire was preventable. And it’s very clear that they didn’t have a plan to do anything about it.” — Rick Caruso (03:40)

• Demand for Action:

  • He emphasizes moving from blame to solutions, advocating a thorough review of the failures to ensure prevention in the future.
  • Quote: "We’ve got to solve these problems...that criticism is factually true. And I think what we need to be doing is spending a lot of time...asking some really tough questions." — Rick Caruso (06:03)

• Personal Impact & Empathy:

  • Caruso shares that members of his own family lost homes, highlighting the deep and personal pain experienced by many.
  • Quote: "My daughter lost her house, my son lost his house...that emotion is a true, raw emotion." — Rick Caruso (07:23)

• Focus on Community:

  • Urges prioritizing rapid rebuilding and direct assistance to those without the resources to recover independently.

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2. Caruso & Mayor Bass: Public Disagreements, Private Cooperation

Tension & Collaboration:

• Public Critique vs. Private Cooperation:

  • Discusses how public disagreements can coexist with efforts to work together behind the scenes.
  • Quote: “We have a number of initiatives that we have delivered to the city to help them do their job better and quicker...I will work with anybody to help rebuild Altadena, Malibu and the Palisades.” — Rick Caruso (05:55)

• Disagreement on “Performative” Politics:

  • Caruso objects to Mayor Bass’s assertion that “politics is performative,” arguing instead that leadership in crisis is a matter of life and death.
  • Quote: “I don’t think politics is performative...What we learned from this fire is that leadership matters...You actually impact lives.” — Rick Caruso (05:26)

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3. Political Ambitions: Governor or Mayor?

Potential Candidacy Status:

• Still Deciding:

  • Caruso describes an ongoing listening tour across California, meeting with various stakeholders but has not made a decision about a future political run.
  • Quote: “I have two different teams...working on both [Mayor and Governor]...I want to do my best to end up in a position where I could do the greatest good to make a difference in people’s lives.” — Rick Caruso (09:42)

• Motivation:

  • Stresses that his interest in public office is driven by service, not careerism.

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4. Revitalizing California’s Film Industry

Industry Under Pressure:

• Competitiveness Concerns:

  • Caruso expresses alarm at California losing film industry jobs to other states and countries, stressing the need for the state to act more like the global economic powerhouse it is.
  • Quote: “There’s an arrogance, I think, in our leadership that the entertainment industry was born here, it’s going to stay here. That’s just not dealing with reality.” — Rick Caruso (11:19)

• Proposed Solutions:

  • Insists on competitive policies to keep production in California, referencing New Jersey’s successful incentives to attract Netflix.
  • Quote: "If we’re the fourth largest economy as a state in the world, let’s act like it and let’s give the resources to keep the entertainment industry in California." — Rick Caruso (11:08)

• Against Tariffs:

  • Dismisses the idea of imposing tariffs on movies made outside the U.S.
  • Quote: “Let’s just be competitive, and let’s not be punitive.” — Rick Caruso (12:29)

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Notable Quotes & Moments

• “When you read that After Action Report, glaring failures, systematic failures of our system, our city, are outlined in there.”

  • Rick Caruso (04:00)

• “Are there tens and tens of thousands of people who are sad and angry? There sure are...I stand with them. I understand it because of the losses that we incurred.”

  • Rick Caruso (07:15)

• “It’s not about putting on a show. It’s actually about making a difference in people’s lives every day.”

  • Rick Caruso (05:29)

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Timestamps for Important Segments

• 01:42 — Host Introduction, Caruso’s Background
• 02:46 — Audio from Mayor Bass Responding to Caruso’s Criticism
• 03:34 — Caruso’s Response: Wildfire, After Action Report, System Failures
• 05:22 — Politics: Public/Private Dialogue, “Not Performative” Leadership
• 06:03–08:19 — Personal Impact, Emotional Toll, Community Rebuilding
• 08:19–09:42 — Political Ambitions: Listening Tour, Decision Pending
• 10:40 — Discussion on California Film Industry, Competitiveness
• 12:29 — Quick Response: Dismissing Film Tariffs

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Summary Takeaway

This episode offers a behind-the-scenes perspective on California’s wildfire recovery, political dynamics in LA, and the urgent need for effective leadership. Rick Caruso’s commentary is marked by directness and personal connection to the crisis, a focus on practical solutions, and a willingness to collaborate beyond public disagreements. He also calls for a strategic approach to preserve California’s cultural and economic assets, signaling potential future political involvement to drive change at the local or state level.

Transcript

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[Carol Massar]

You're listening to Bloomberg Business Week with Carol Massar and Tim Stanvick on Bloomberg Radio.

[Host]

We are in the heart of Hollywood live at Bloomberg Screen Time. We're speaking to the moguls, celebrities, entrepreneurs, the leaders defining the next phase of pop culture. One of those leaders joins us now. Rick Caruso. He's the billionaire real estate developer, the former candidate for mayor of L A. He's the founder and executive chairman of Caruso. It's one of the largest privately held real estate companies in the U.S. he's a philanthropist. He's going to be here on stage a little bit later for a conversation with our L A Bureau Chief, John Gittleson. He joins us now ahead of that conversation. Rick, welcome back to Bloomberg businessweek. It's been a bit since we last spoke to you. We got to start with what L A Mayor Bass said last night. Here she spoke with Sarah McGregor, Managing Editor, National Desk at Bloomberg. Here she is last night at Screen Time.

[Narrator]

Rick Caruso, who you defeated in 2022 in the mayor's race and has been one of your most vocal critics around the fires. He released a statement today after the arrest, saying it shows the disaster was preventable and in his words, calling it a failure of Government on an epic level, starting with Mayor Bass. He'll be with us on this stage tomorrow. How do you respond to that?

[Karen Bass]

Well, the way he characterized me sounded like Trump, but I just was saddened by it, honestly, because I think that that response was beneath him. And we actually, he was in my office a couple of weeks ago. We're working on something. We're working on a couple of things together. But I think that he is sad and bitter, and I think that it is really sad to exploit you guys laughing about that. I feel like it's exploiting tragedy, it's exploiting grief.

[Host]

Well, there you have it. That was LA Mayor Karen Bass last night here at Bloomberg Screen Time. Rick Caruso joins us now. Rick, your turn to respond to criticism of your criticism from the LA mayor. What do you make of it?

[Rick Caruso]

Listen, I said what I think so many people around Los Angeles, throughout L. A and this whole region feel, especially after reading the After Action Report. I don't know if any of you have read it, but it's very clear that this fire was preventable. And it's very clear that they didn't have a plan to do anything about it. Because if she had a plan, she would have responded in that question by saying, this is the plan I had. And, you know, we did our best to implement it. But I, you know, going forward, we've got to solve these problems. Because when you read that After Action Report, glaring failures, systematic failures of our system, our city, are outlined in there, and there are solutions to all of them. And, you know, the focus has got to be making sure this kind of thing doesn't happen again. But I'm not going to dwell on, on the fact that the city failed because, boy, it's in black and white now and very clear.

[Interviewer]

Well, Rick, just to follow, though, Mayor Bass said that you guys were together just recently working together on things. So I'm just curious. You know, conversations sometimes are things we hear in public versus things we hear behind the scenes. I mean, one of the things we got from Mayor Bass is talking about members of the Trump administration that certainly LA, CA in general have clashed with, but that she talks to them on a regular basis, people she knew from her time, certainly in D.C. so I'm just curious, what are the conversations or what can you share with us about maybe the constructive conversations you're having with Mayor Bass behind the scenes about what happened, what couldn't be done better going forward?

[Rick Caruso]

Yeah, well, here's something that's really important that she said in the next question. She Said politics is performative and, you know, they would go out, beat each other up, and then go have dinner, something like that that you talked about. I don't think politics is performative. I think what we learned from this fire is that leadership matters, that these positions, when you're the head of a city, the head of a state, in any kind of very important elected office, you actually impact lives. And it's not about putting on a show. It's actually about making a difference in people's lives every day. So I was really stunned by her statement. And listen, I have met with her, my job, through Steadfast, we are working very hard with the city, with the county, with the state to get people back in their homes quickly and safely get these neighborhoods rebuilt. And so we have a number of initiatives that we have delivered to the city to help them do their job better and quicker. And I have met with her and I will work with anybody to help rebuild Altadena, Malibu and the Palisades, and do that with great honesty, great dedication, because that is the mission right now, is to get people's lives rebuilt that have been shattered. But it's not performative. It's real. And it's also real in my criticism, because that criticism is factually true. And I think what we need to be doing is spending a lot of time, like I just said, going through that after action report asking some really tough questions. How could this have happened and what are the solutions so it never happens again. Whether it's a fire or an earthquake or a flood or whatever may be, it clearly points out that there wasn't a plan and the system failed and a community burnt down and 11 people died. Not forget about that. So, you know, are there tens and tens of thousands of people who are sad and angry? There sure are. And yesterday after that announcement came out, it re triggered a lot of emotions and a lot of people, and I stand with them. I understand it because of the losses that we incurred, that my daughter lost her house, my son lost his house. And that emotion is a true, raw emotion. It's important to recognize and it's frankly important to sympathize and be compassionate about because people are really hurting. I'm fortunate. We have a number of options, but the far majority of the people that lost their homes or lost their jobs, they don't have options. And they need help and help quickly. And that's what we're doing at Steadfast is making a real difference in people's lives. And I'm proud of that.

[Host]

Well, Rick, last time you were on with us, it was just over a month ago. You said you were still deciding whether or not you were going to run for mayor or for governor. Have you made up your mind yet?

[Rick Caruso]

No, but I'm working hard at it. I've been spending a lot of time going across the state. I was in San Francisco last night at a great dinner with a bunch of tech executives and entrepreneurs, and I was in Bakersfield and I've been all over the place. So I'm doing what I want to do, meaning I'm on this tour of the state and the city. I'm meeting people, I'm listening to people, I'm understanding what the issues are, developing policies where we can make a big difference whether it's the city or the state. And at the right time, I'll make my decision and I'll announce it, and you guys will be one of the first to know.

[Host]

He's got a couple movies coming. Thank you.

[Interviewer]

We are talking with Rick Caruso, founder and executive chair of Caruso Wait. Having said that, you know, I'm not going to let this go completely. You said you're in San Francisco talking to tech executives, you're in Bakersfield, you're all over the place. You're in LA right now. That sounds to me like a broader scope. So are you leaning maybe towards being governor versus Mayor? I'm just, you know, I'm just curious. You're leaning a little bit.

[Rick Caruso]

That is a great follow up. I love you. But I am keeping both options very open. I have two different teams. I have two different teams that are working on both, and both are really important positions. And I want to do my best to end up in a position where I could do the greatest good to make a difference in people's lives. And that is my motivation. It's not a career move for me. It's really to give back like I've done before, working with three different mayors. And you know, your, your LA lead guy, John, who just wrote the article about me, you know, there was a great statement in there that three mayors turned to me to help with critical problems that needed to be fixed at the time. And, and I was honored to be able to do that. So to me, that's what public service is all about, is having the trust of people and really making a difference in people's lives. And I'll let you know where I end up when I make a decision.

[Host]

Well, John Gittleson is going to be speaking with you on stage here at Screen Time Just a little later. If you have not yet seen that story in Bloomberg Business Week, check it [e-mail] and on the Bloomberg terminal as well. I want to talk a little bit about Hollywood and what you think the fix is here. As we know, the film industry has been under tremendous pressure. Covid. The fires, technological disruption. What is the right fix?

[Rick Caruso]

We've got to be competitive with Atlanta. We got to be competitive with New Jersey. We've got to save the film industry. You know, people that are below the line are just getting destroyed. You know, the florists, the drivers, all of the people that support the entertainment industry. There's an arrogance, I think, in our leadership that the entertainment industry was born here. It's going to stay here. That's just not dealing with reality. And this is where I think leadership and executive skills really matter. Identify a problem and solve it. If we're the fourth largest economy as a state in the world, let's act like it and let's give the resources to keep the entertainment industry in California and in Los Angeles. And we've. We've got to be competitive and not allow and force people, quite frankly, to go to London. Like I said, donor New Jersey. I mean, the mayor of New Jersey, you know, Phil did a hell of a job getting Netflix, gave him a lot of money to build a studio there. And that's a sucking sound of jobs coming out of California. So I would reverse that course immediately so that we're competitive and keep people in our state.

[Interviewer]

20 seconds. Very quickly. Do you think a tariff on movies made outside the United States makes sense? And forgive me, really quickly, no.

[Rick Caruso]

Now let's. Let's just be competitive and let's not be punitive. And if we can't win the industry by being competitive, shame on us. I think we can.

[Interviewer]

All right, Rick, you know where to find us when you're ready to announce.

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