Wall St. Green Pales
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20110530-NEWS--0001-NAT-CCI-CN_-- 5/27/2011 7:33 PM Page 1 INSIDE TOP TOP STORIES ENTREPRENEURS What’s the city’s AND THE WINNERS most innovative FOR 2011 ARE ... agency? You’ll ® PAGE 17 never guess PAGE 2 Blame boards for VOL. XXVII, NO. 22 WWW.CRAINSNEWYORK.COM MAY 30-JUNE 5, 2011 PRICE: $3.00 City Opera, Folk Art Museum troubles IN THE MARKETS PAGE 2 Applesauce’s odd Wall St. journey from China to public schools green PAGE 3 Secrets of Gotham’s pales drop in crime Pay droops along with THE INSIDER, PAGE 8 revenues, profits. It’s a Bold new brewer whole new world, NY seeks to tap the Bronx mystique BY AARON ELSTEIN NEIGHBORHOODS, P. 14 A job at Goldman Sachs may well be the closest thing in life to a golden USINESS IVES ticket. But even Goldman folks are B L feeling less wealthy these days. Aver- age pay per employee fell 14% last year, to more than a third below 2007’s peak. The explanation is simple.Business is down—way down—at Goldman CAP LEADIN KO: and elsewhere on Wall Street. Last caption readout KO week, the New York Stock Exchange go here and here and noted that the total pretax earnings here and here among its member firms fell more than 50% last year, to $28 billion. Revenues were down $30 billion, or 16%. Wall Street is on a downward tra- jectory, and its fortunes won’t be re- crain composite image:crain bloomberg news, newscom, mcmullan patrick See IN THE MARKETS on Page 4 SEAGRAM’S ON ICE: The relationship between (counterclockwise from top) RFR Holding co-founders Michael Fuchs and Aby Rosen, and billionaire partner Peter Brant and his wife, Stephanie Seymour, started with a savvy deal but ultimately soured. GREG DAVID Actually, city’s jobs picture GOTHAM GIGS is brighter than many think Page 11 Bicycles built for one, by hand P. 27 ● ANNE FISHER Mastering the art of working the room P. 27 PRICKLY PARTNERS Retailers ● MOVERS & SHAKERS Morgans Hotel CEO makes suite deals P. 28 follow the ● GAEL GREENE Three Wanted: buyer for major stake in prestige hats for The Dutch P. 30 tower. Must play well with others money INDEX Fuchs have left a trail of fractured partnerships in re- Private-label brands BY THERESA AGOVINO cent months. One of the reasons that billionaire Pe- VIEWPOINT _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _10 ter Brant is unloading his share of the property is be- help stores control REAL ESTATE DEALS _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _16 It’s not surprising that an opportunity to own cause of disparaging remarks the pair made about his profits and stand out CLASSIFIEDS _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _22 49% of the landmarked Seagram Building has at- wife, former supermodel Stephanie Seymour. FOR THE RECORD _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _24 tracted major investor attention.Hailed as a master- Separately, investor Harry Lis is suing Messrs. piece of modern architecture, the sleek Park Avenue Rosen and Fuchs for allegedly withholding millions BY ADRIANNE PASQUARELLI HOT JOBS _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _27 EXECUTIVE MOVES tower commands some of New York’s highest rents in proceeds from the sale of two buildings they owned _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _27 and boasts some of its most elite investment firms as jointly. And last year, the duo split with noted hote- Items from new apparel brand Bar THE WEEK AHEAD _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _30 tenants. lier Ian Schrager amid a reported clash of egos. III are flying off Macy’s shelves, with WEEK ON THE WEB _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _31 But the asking price—said to be more than $700 “The problems in the real estate market put a lot young fashionistas grabbing the line’s CHEAT SHEET _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _31 million—may be the least of prospective buyers’ of pressure on partnerships,” said Dan Fasulo, man- floral dresses and sheer ruffled blous- concerns. Majority owners Aby Rosen and Michael See PRICKLY PARTNERS on Page 26 es. Bar III is not the latest creation from a hot designer but is one of Macy’s private labels, which the de- NEXT WEEK PEOPLE TO partment store designs, manufactures and markets in-house. WATCH IN SILICON ALLEY “Bar III has been on fire since its ELECTRONIC EDITION Meet the geeks, the execs and the financiers debut” in February, said Molly Lan- genstein, Macy’s executive vice presi- who are rebooting New York City’s economy dent of fashion and new business de- NEWSPAPER See RETAILERS on Page 26 20110530-NEWS--0002,0003-NAT-CCI-CN_-- 5/27/2011 8:00 PM Page 1 IN BRIEF THE BLOOMBERG ADMINISTRATION IS NYC deputy mayor’s ANGLING FOR UBS TO RELOCATE ITS investment banking unit to the city.The bank, facing mounting pressure from Swiss regulators, is considering New York, London and Singapore as alternatives to its current Swiss home, according to The Wall Street Journal. UBS is also considering moving its Stamford, Conn., operation back here as well. “As the global financial capital, with the world’s most talented work force and unsurpassed quality of life, New York City would be a logical place,” said a city Economic Development Corp. spokesman. AFTER A LONG DROUGHT, CORPORATE HOW GREEN WAS MY SPONSORSHIP FOR THE ARTS IS SHOWING AGENCY: Deputy Mayor Stephen Goldsmith (left) signs of life. Last week,The Museum of and Caswell Holloway, Modern Art and MoMA PS1 announced a head of his star two-year partnership with Volkswagen that will department, mark the museum’s most extensive corporate Environmental sponsorship ever. Under the terms of the Protection agreement, the German carmaker will help fund a major art exhibition at MoMA PS1 in 2013, sponsor a series of installations in MoMA’s sculpture garden, help expand MoMA’s online course offerings and donate to MoMA’s collection two works by the artist Francis Alÿs.The museum would not release the dollar amount of the sponsorship. n BY THE NUMBERS Weekly shift of the city’s economy é HOLD THE CHAMPAGNE Figures for spending by all-powerful consumers and for GDP growth surprised on the downside. Meanwhile, the latest jobless claims data showed a rise. 8 $7.3B 11.5% NYC-EUROPE AMOUNT spent BRONX’S April flights added this on Internet jobless rate, summer, out of advertising in U.S. highest in state, 19 U.S.-Europe in 1Q, up 23% 4.7 points above flights added from year earlier Manhattan’s Source: Source: Interactive Source: NYS Dept. Airline/Aircraft Advertising Bureau of Labor Projects Inc. WATCH THE CLOSING DOORS Over the past year, more people have been crowding onto the city’s subways every day. buck ennis Two institutions for the arts o to slash their budgets. But experts said it Poor management leaves New York City Opera, wasn’t the recession that brought down the Source: Metropolitan Transportation Authority American Folk Art Museum struggling to survive City Opera or the Folk Art Museum, but negligence by their boards. ADDICTED TO NUMBERS? stitution after being forced to sell its new GET A DAILY DOSE AT @STATSANDTHECITY BY MIRIAM KREININ SOUCCAR home on West 53rd Street to the Museum Plans should have been in place of Modern Art and retreat back to its pal- “The question is why their boards let CORRECTIONS New York City Opera chief George try 5,000-square-foot space across from these organizations go bankrupt,”said Geri Steel spent last week in meetings with his Lincoln Center. Thomas, president of ArtStaffing.com, a The profits from impact investing over the next decade are department heads,deciding how to cut the As two major Manhattan institutions consulting firm specializing in culture.