Bessent Slams Newsom at Davos: Fraud, Fire, and Failed Leadership Exposed

Paul Riverbank, 1/22/2026Treasury Secretary Bessent blasts Newsom at Davos, spotlighting scandals and federal probes into California.

Newsom, Bessent quipped, struck him as a blend of “Patrick Bateman meets Sparkle Beach Ken”—a jab loaded with references plenty in the business crowd seemed to catch. But this wasn’t just about style or boardroom banter. The substance followed hard: Bessent painted Newsom as essentially tone-deaf on economic matters, suggesting he was “perhaps the only Californian who knows less about economics than Kamala Harris.” The audience stirred, some stifling grins, others bristling at the barb.

He wasted no time rattling off grievances. Bessent cited California’s accelerating exodus—families abandoning the state for more affordable homes and lower taxes elsewhere—as evidence of failed leadership. He called out Sacramento’s swollen budget shortfall, and pointed to California’s chronic homelessness, which has become a running story on both coasts. Even those living in the exclusive Palisades, Bessent noted, hadn’t been spared: wildfires had torched homes there too, underscoring, in his telling, a climate of mismanagement.

The Treasury Secretary’s message, though, went deeper than a political roast. “He is here hobnobbing with the global elite while his California citizens are still homeless. Shame on him,” Bessent declared, using the grandeur of the room as a spotlight on what he insisted were misplaced priorities.

If critics thought he was done, they misread the moment. Bessent circled back to the pandemic, a period that, for many Californians, is still a raw memory. He invoked the now-infamous episode at the French Laundry, a dinner that became a symbol—for some—of hypocrisy: “He’s here this week with his billionaire sugar daddy, Alex Soros. And Davos is a perfect place for a man who, when everyone else was on lockdown, when he was having people arrested for going to church, he was having $1,000 a night meals at the French Laundry.”

For the business and political elite in the room, the exchange was more than just tit-for-tat. It was edged with real stakes. Bessent made clear the Trump administration intends to bring the fight directly to California, launching a crackdown on “waste, fraud, and abuse.” Investigations are already underway into billions of dollars in federal childcare and family assistance funds—ten billion, frozen across five states, with California a central player in the probe.

The tremors have already reached Newsom’s inner circle. Dana Williamson, Newsom’s former chief of staff, faces federal charges of conspiracy, fraud, and obstruction. Data released by the Department of Government Efficiency are damning: California reportedly accounted for a staggering $305 million out of $382 million in fraudulent unemployment payments since 2020.

With the Department of Justice now dedicating a specialized division to root out such fraud—Minnesota the first target, California up next—the pressure is on, and the headlines keep on coming.

As the dust settled in the conference hall, Bessent offered one final, icy summation: “He is too smug, too self-absorbed, and too economically illiterate to know anything.” A stinging closer, punctuating a week in Davos that may well echo back home.

Governor Newsom, for his part, did not remain silent. From another podium, he called on world leaders to “stand tall and firm and have a backbone” as Donald Trump signaled his return. While his remarks found applause among allies, Bessent’s accusations and the looming investigations ensured the glare would follow Newsom back to Sacramento.

It’s easy to focus on the flash and spectacle of such high-octane public spats. Davos, after all, is rarely dull. But for Californians outside the swirl of the Alps—those facing rising rents, job instability, or just watching the news with growing skepticism—the question looms: Do these speeches signal anything more than political theatre? Will they translate into safer streets, more jobs, or a reversal in trust toward those in office?

That, perhaps, is the real story. Not who wins the war of words in the snow, but who manages to deliver genuine solutions when the spotlight fades.

Treasury Secretary Scott Bessent showed little restraint at Davos this week, making it starkly clear where he stands on California’s Governor Gavin Newsom. On stage—framed by the snowy Alpine glare, coalition chatter, and the hum of global media—Bessent didn’t simply question Newsom’s policy record. He took aim, almost theatrically, at the governor’s entire persona.Newsom, Bessent quipped, struck him as a blend of “Patrick Bateman meets Sparkle Beach Ken”—a jab loaded with references plenty in the business crowd seemed to catch. But this wasn’t just about style or boardroom banter. The substance followed hard: Bessent painted Newsom as essentially tone-deaf on economic matters, suggesting he was “perhaps the only Californian who knows less about economics than Kamala Harris.” The audience stirred, some stifling grins, others bristling at the barb.He wasted no time rattling off grievances. Bessent cited California’s accelerating exodus—families abandoning the state for more affordable homes and lower taxes elsewhere—as evidence of failed leadership. He called out Sacramento’s swollen budget shortfall, and pointed to California’s chronic homelessness, which has become a running story on both coasts. Even those living in the exclusive Palisades, Bessent noted, hadn’t been spared: wildfires had torched homes there too, underscoring, in his telling, a climate of mismanagement.The Treasury Secretary’s message, though, went deeper than a political roast. “He is here hobnobbing with the global elite while his California citizens are still homeless. Shame on him,” Bessent declared, using the grandeur of the room as a spotlight on what he insisted were misplaced priorities.If critics thought he was done, they misread the moment. Bessent circled back to the pandemic, a period that, for many Californians, is still a raw memory. He invoked the now-infamous episode at the French Laundry, a dinner that became a symbol—for some—of hypocrisy: “He’s here this week with his billionaire sugar daddy, Alex Soros. And Davos is a perfect place for a man who, when everyone else was on lockdown, when he was having people arrested for going to church, he was having $1,000 a night meals at the French Laundry.”For the business and political elite in the room, the exchange was more than just tit-for-tat. It was edged with real stakes. Bessent made clear the Trump administration intends to bring the fight directly to California, launching a crackdown on “waste, fraud, and abuse.” Investigations are already underway into billions of dollars in federal childcare and family assistance funds—ten billion, frozen across five states, with California a central player in the probe.The tremors have already reached Newsom’s inner circle. Dana Williamson, Newsom’s former chief of staff, faces federal charges of conspiracy, fraud, and obstruction. Data released by the Department of Government Efficiency are damning: California reportedly accounted for a staggering $305 million out of $382 million in fraudulent unemployment payments since 2020.With the Department of Justice now dedicating a specialized division to root out such fraud—Minnesota the first target, California up next—the pressure is on, and the headlines keep on coming.As the dust settled in the conference hall, Bessent offered one final, icy summation: “He is too smug, too self-absorbed, and too economically illiterate to know anything.” A stinging closer, punctuating a week in Davos that may well echo back home.Governor Newsom, for his part, did not remain silent. From another podium, he called on world leaders to “stand tall and firm and have a backbone” as Donald Trump signaled his return. While his remarks found applause among allies, Bessent’s accusations and the looming investigations ensured the glare would follow Newsom back to Sacramento.It’s easy to focus on the flash and spectacle of such high-octane public spats. Davos, after all, is rarely dull. But for Californians outside the swirl of the Alps—those facing rising rents, job instability, or just watching the news with growing skepticism—the question looms: Do these speeches signal anything more than political theatre? Will they translate into safer streets, more jobs, or a reversal in trust toward those in office?That, perhaps, is the real story. Not who wins the war of words in the snow, but who manages to deliver genuine solutions when the spotlight fades.