20100201-NEWS--0001-NAT-CCI-CN_-- 1/29/2010 8:18 PM Page 1

INSIDE Larry and the Port: an TOP STORIES insider’s As Speyers exit guide Stuy Town, an —Greg David Page 11 unknown steps up ® to fill the gap PAGE 2 Costco misses VOL. XXVI, NO. 5 WWW.CRAINSNEWYORK.COM FEBRUARY 1-7, 2010 PRICE: $3.00 mark in PAGE 2 Code blue Municipal Art for city’s Society back in SALLIE FORTH indie black PAGE 3 Lynch’s What Cablevision Krawcheck has sees in bullish ambitions St. Vincent’s, Lenox PAGE 3 Hill can’t go it alone; for thundering herd North General next? At Foot Locker, CEO must BY AARON ELSTEIN BY BARBARA BENSON clear high hurdles as one of wall street’s top exec- the era of the independent Manhat- PAGE 7 utives for more than a decade, Sallie tan is drawing to a close. Last Krawcheck understands all too well week’s news that Saint Vincent why most mergers between broker- Catholic Medical Centers actively age firms and Main Street banks shopped for a merger partner to stave off BUSINESS LIVES don’t live up to the hype. a return to bankruptcy is only the latest Apart from the inevitable tech- evidence.Uptown,Lenox Hill Hospital nical glitches and bruised feelings is seeking to end 153 years of independ- that come from slamming together ence as it negotiates a merger of its own two companies with different ways with the sprawling North Shore-Long of doing business, there’s this incon- Island Jewish Health System. venient truth: Most people simply The reason is simple:Neither hospi- aren’t interested in having investment tal can go it alone.And that bodes poor- ideas foisted on them by the same folks ly for other remaining independents, who provide them with a checking ac- notably North General Hospital. count or a mortgage. “This is about the changing health So as Ms. Krawcheck tries to knit to- market in City,” notes gether Merrill Lynch and Bank of Howard Berliner, professor and chair America—the biggest combination of health policy and management at ever of a brokerage and a bank—she See DYING on Page 20 GOTHAM GIGS has a clear idea of what pitfalls to avoid. Coach Rikki Samuels: “I’ll tell you words we’ve outlawed [in ice, ice, baby P. 21 my division]:Cross-sell.Financial servic- G ANNE FISHER says es supermarket. Distribution channel. Any of the words that imply an un- Bank pay businesses can get a windfall from U.S. P. 21 derlying product push to clients,” she says.“They have a history of G MOVERS & SHAKERS simply not working.” gets boost dishes P. 22 Evidently, top manage- G GAEL GREENE gets ment elsewhere within hasn’t gotten on the sly crabby in P. 23 that memo.A day after Ms. Krawcheck made her com- ments in an interview It’s a backdoor bonus: INDEX See KRAWCHECK on P. 15 Execs collect dividends IN THE MARKETS ______4 MERRILL PINCH: on unvested shares REAL ESTATE DEALS PLUS ______9 Sallie Krawcheck is balancing the VIEWPOINT ______10 corporate demands BY AARON ELSTEIN CRAIN’S ONLINE POLL ______10 of new owner Bank of America with FOR THE RECORD ______12 winning over Merrill hoping to mute public outrage over CLASSIFIEDS ______18 Lynch’s highly huge Wall Street bonuses,the big banks HOT JOBS ______21 mobile army of are making a show of paying employees 15,000 brokers. EXECUTIVE MOVES ______21 with more restricted stock, which can’t

THE WEEK AHEAD ______23 be touched for years, and less cash.

buck ennis Much less well-known is this:Many of the banks are paying dividends on those shares—even though the em- 05

5 ployees don’t actually own them yet. REPORT FINANCE While the perk angers some share- How boring old money-market funds almost holders, the reality is that executives at destroyed the world P. 13 banks and other large companies rou- ELECTRONIC EDITION tinely collect dividends on shares they Crain’s list: top money managers P. 16 don’t own. Most companies reveal only NEWSPAPER See EXEC PAY on Page 20 71486 01068 0 20100201-NEWS--0002,0003-NAT-CCI-CN_-- 1/29/2010 8:05 PM Page 1

acre, 11,000-unit complex. Some expect IN BRIEF CW Capital will tap Rose Associates, Picking up pieces which ran the property for its former own- er, MetLife Inc. Other potential managers AEG parlays local connection include WinnCompanies, which says it into winning Aqueduct bid has been talks with CW and is very inter- at Stuyvesant Town ested. Far thornier will be figuring out how AQUEDUCT ENTERTAINMENT GROUP rode a much rent can be charged and what rebates keen understanding of local politics to victory in are due tenants, following last year’s court the drawn-out battle to run a slot parlor at Special servicer will lead the lenders ruling that Tishman Speyer had illegally Aqueduct Racetrack, which concluded Friday. deregulated rents on roughly 4,000 units. Insiders say the state’s decision to go with services be maintained and that they get a The court didn’t say whether its ruling AEG, which includes the Rev. Floyd Flake’s BY THERESA AGOVINO AND AMANDA FUNG seat in the negotiations, and politicians are should be retroactive.Tenant lawyers esti- Empowerment Development Corp., had as vowing to protect the complex’s rent-reg- mate their clients are owed $200 million in much to do with the in the coming weeks, control of ulated status. rebates. dynamics of southeast Stuyvesant Town/Peter Cooper Village “Figuring out the future [of Stuy Town] The tenants’ lawyer had been negotiat- Queens politics as it did will pass from one of New York’s most won’t be a simple process, and it won’t nec- ing with Tishman Speyer on a settlement, with the particulars of the glamorous and powerful real estate fami- essarily be a fast process,”says Dan Garod- but CW Capital’s position is unclear. The bid. lies to a company that most people have nick, a City Council member who lives in special servicer didn’t respond to requests “It’s fair to say that never heard of, a major player in an indus- the complex. for comment. having community try that few even know exists. For openers, the collapse has affected CW Capital can have the property ap- support in southeast Queens turned out to be a Last week’s decision by the partnership scores of investors around the world who praised after issues regarding rebates and very important component here,” a Democratic led by Jerry Speyer and son Rob to hand now find themselves trapped in a giant future rental income are settled. The ap- insider says. back the keys to the complex after default- maze of often competing interests. praisal will be key to restructuring the loan AEG was well-positioned in the ing on a mortgage payment lays the “The problem is that when these deals and/or selling the property. neighborhood from the start. Mr. Flake was a groundwork for the transfer.Stepping into were being put together,no one was think- Several groups have already tentatively congressman in the area for 11 years, and his the breach will be CW Capital, a special ing they might unravel in three or four expressed interest in buying Stuy Town. Greater Allen A.M.E. Cathedral of New York is servicer. Such companies work out trou- years,” says Michael Carp, executive vice They range from to a ven- a must-stop on any campaign trail. His protégé bled-property loans to salvage whatever it president at Berkadia Commercial Mort- ture including the LeFrak family. Malcolm Smith, who is temporary president of can for lenders. gage, another special servicer. The appraisal will also clear a path for the Senate, was widely believed to favor AEG. “There is no question that CW Capital a restructuring of the debt by allowing The group’s consultant, Cordo & Co., knew is up to the task,” says Richard Parkus, an Diced up and distributed CW Capital and others to determine how important it was to win over the analyst at Deutsche Bank. “They are sea- like most big real estate deals of the which mortgage holders still have a claim. community and knew how to do it, the insider soned guys.” boom years,the debt that helped finance the Analysts say the property is worth about says. CW Capital will need all of its skills to $5.4 billion Stuy Town deal was diced up $1.8 billion. But some of those who have “There was a feeling of understanding from sort out the wreckage left by the implosion and sold to a variety of investors, each with lost money may go to court before they AEG,” says Assemblywoman Audrey Pfeffer. of the largest single residential real estate different rights, depending on the risk in- give up. “There was a feeling of trust.” purchase in history.Lenders who have lost curred.The expected controlling position of Meanwhile, a group of mezzanine But the deal is not sealed yet.The winning billions of dollars as the property’s value CW Capital, a Washington, D.C.-based lenders—who provide the money to fill bidder now must comply with conditions set by shriveled by more than half are jockeying unit of a Canadian money management the gap between the first mortgage and the Assembly Speaker Sheldon Silver, including to reclaim what’s left of their doomed in- firm, stems from its representing holders of buyers’ equity—have threatened to push raising its up-front payment to $300 million vestments. Meanwhile, prospective buyers the most senior portion of the debt. the property into foreclosure and seize and having everyone affiliated with the bid pass are circling, tenants are demanding that CW Capital will have two immediate control. That effort could yet be revived. a state Division of Lottery criminal background concerns. It must select a re- In the middle of all this will stand CW check, among other measures. HIGH-RISE HELL: Sorting placement for Tishman Capital,the second-largest special servicer —daniel massey and amanda fung out the mess at Stuy Town Speyer to manage the 80- in the county when ranked by the dollar won’t be simple, and it won’t amount of loans it is servicing, according be fast. Fitch Ratings. As of the end of last year, BY THE NUMBERS CW Capital was attending to $15.5 billion worth of distressed loans. In the third Weekly shift of the city’s economy quarter of last year, the company recovered 87% of what its clients were owed, the CALL IT ROLE REVERSAL: Last year, stocks rose even as the economy faltered. Last week, third-best rate in the industry.  once again, stocks slipped despite a healthy CW Capital was selected because one of rise in home prices and consumer confidence. its sister companies holds junior bonds in one of the pools where the Stuy Town loan resides. Such arrangements are standard in +6.3% 2.3M 29% these circumstances even though they raise BROADWAY WEEKDAY NYC PROPORTION revenues for the bus ridership in of private U.S. concerns about conflict of interest. 4 weeks ended November, down companies Stephanie Petosa, a managing director Jan. 24, vs. year- 2.1% from planning to add at Fitch, notes that as more loans enter earlier period previous staff in 2010 special servicing and tight credit condi- Source: The November Source: Grant tions make it hard to sell properties and re- Broadway League Source: MTA Thornton International Ltd. structure debt, CW Capital and all the special servicers will face an unprecedent-  PAIN RELIEF: After picking up again in the middle of the newscom ed environment. year, foreclosure pressures eased in the final quarter. NYC residential foreclosures Costco misses mark in Harlem

“That’s a lot of people,” says Matthew , and Long Island City, Queens, Imposes big layoffs as Washington, chairman of the neighbor- are popular. But the recently opened logistics of bulk buys hood’s Community Board 11, adding that Harlem location at East River Plaza— Source: PropertyShark.com the area’s unemployment rate is 17%.“At a Costco’s 110,000-square-foot foray into confound Manhattanites time when many are hurting,we want peo- the market—is struggling. vol. xxvi, no. 5, february 1, 2010—Crain’s New York Business (issn ple to be working: They have families to One of the problems plaguing the store 8756-789x) is published weekly, except for combined issues June take care of.” is a lack of nearby public transportation:It’s 28/July 5, Aug. 30/Sept. 6, and Dec. 20/Dec. 27, by Crain Com- BY ADRIANNE PASQUARELLI munications Inc., 711 Third Ave., New York, NY 10017. Periodicals Since the warehouse club sells discount- a 15-minute walk from the nearest subway postage paid at New York, N.Y., and additional mailing offices. ed merchandise,logic might suggest that the stop to the far east 116th Street location, Postmaster: Send address changes to: Crain’s New York Business, after opening a store in late Novem- Harlem store would thrive during the reces- which is partially obscured by a parking Circulation Department, 1155 Gratiot Avenue, , MI 48207-2912. for subscriber service: Call (888) 909-9111.Fax ber with promises of jobs and economic re- sion as shoppers stock up on cheap wares. garage. The retailer’s Brooklyn outpost, by (313) 446-6777.$3.00 a copy, $59.79 one year, $109.79 two years. vival for the community of , Nationally,the Issaquah,Wash.-based chain contrast, is a mere block from the trains. It (GST No. 13676-0444-RT) ©Entire contents copyright 2010 by Crain Communications Inc. warehouse club Costco Wholesale Corp. has been doing well,posting December sales also offers free parking, while the Harlem All rights reserved. terminated 160 of its 453 workers there last growth of 11%, to $8.26 billion. lot charges $2.50 per half hour. month in order to cut costs. The Costco locations in Sunset Park, See COSTCO on Page 12

2 | Crain’s New York Business | February 1, 2010 20100201-NEWS--0002,0003-NAT-CCI-CN_-- 1/29/2010 8:06 PM Page 2

ART OF FINANCE: In his first year, President Vin Cipolla reduced the Newsday Municipal Art Society’s budget 30%, to $4.2 million. harder- pressed Labor dispute, few sign-ups on pay site add to Long Island paper’s difficulties

pecting a $7 million loss, though that’s after BY MATTHEW FLAMM write-downs. For the first three quarters of last year, the in the 18 months since Cablevision Systems paper had $10.7 million in cash flow. Corp. bought Newsday for $650 million, the cable giant has suffered the derision of in- A more focused audience vestors who wondered why it needed a news- newsday is betting that lower costs and an paper, and has taken a $400 million write- increasingly local focus will ensure the paper’s down on the investment. survival. Giving subscribers free access to the Now Cablevision has a new kind of pay site is part of the strategy. The aim is to headache. Last week, members of the paper’s provide a concentrated audience to advertis- union overwhelmingly rejected a contract of- ers and hold on to readers at a time of declin- fer that would have cut pay for some staffers ing circulation. by 10% and for others by 15%. “The exclusive access [to Newsday.com] Fallout from the labor fight has included for both Newsday and Cablevision sub- the recent leak to the media that scribers results in a more engaged audience,” Newsday.com has attracted only 35 sub- said Tad Smith, president of local media at scribers since a pay wall went up in late Octo- Cablevision, in an e-mail exchange. “Cus- ber. (The site is free to the paper’s home sub- tomer retention drives revenue growth.” scribers and to Cablevision customers.) He added that the Web site will be devel- oping “deep content and useful tools,” specif- Uneasy marriage ically targeting Long Island residents, and the dispute has also focused a spotlight dismissed the hubbub over the site’s having on the uneasy marriage between the cable only 35 new paying subscribers. He said the Art society tries operator and a venerable newspaper that more important statistic is the number of had already been battered by its previous unique visitors from the New York metro owners, including Tribune Co.’s Sam Zell, area, which fell just 2% in December, com- and by an industrywide downturn in print pared with the year-earlier period, to advertising. 643,000, according to ComScore. The gated self-preservation No one on either side is happy about See NEWSDAY on Page 20 plummeting revenue. Newsday Pub-

buck ennis lisher Terry Martinez has told em- ployees that 2009 revenue will end of 2008 after 40 years, Mr. Cipolla is come in at around $350 million— Group that saved Grand modernizing the institution and putting it on down from $550 million four Central cuts back, works solid financial footing. years ago. The company is ex- In his first year,Mr.Cipolla,53,erased the on urban design projects deficit by cutting the organization’s budget 30%, to $4.2 million.The cuts included some layoffs—the staff now numbers 39. Last BY MIRIAM KREININ SOUCCAR month, in an effort to save money, the socie- ty moved out of its home of more than 25 the municipal art society is known best years in the Villard Houses on Madison Av- for its successful campaign to save Grand enue to the Steinway Hall Building on West Central Terminal from the wrecking ball 30 57th Street. The group’s bookstore and exhi- years ago. Lately, the 117-year-old historic bition space were lost with the move, but Mr. preservation group has been more focused on Cipolla says the society will open a separate saving itself. space for the public in the future. In recent years,the advocacy group’s influ- ence slipped away, as new neighborhood New mission preservation groups proliferated.At the same mr.cipolla also shifted the group’s mission, time, the society spread itself too thin, focus- from a focus on historical preservation to one MAKING THE ing on dozens of projects throughout the five of making a more livable place MOVES: Cablevision’s boroughs, and racking up a $3.8 million by supporting what the society considers in- James Dolan (near deficit in the process. telligent urban design projects.To do that,the right) and Tad “The perception about MAS was that it was group uses tried-and-true advocacy tech- Smith are betting coming to the end of its life cycle,” says Geri niques, from lobbying elected officials to that lower costs and a Thomas,president of Thomas & Associates,an picketing on the street. local focus will lead to arts and culture consulting firm in New York. “It used to be that if there was a preserva- Newsday’s revival. To revive the storied institution, the tion battle anywhere in the city, MAS would board—led by architect David Childs, who be providing advocacy to support that,” Mr. designed the Time Warner Center—hired a Cipolla says. “Today there are so many doing new president, Vin Cipolla, former head of this,it doesn’t need to be entirely up to MAS.” the National Park Foundation and a past chief To create more of an impact, Mr. Cipolla executive of Fidelity Investments. Taking winnowed down the number of projects the over from Kent Barwick, who retired at the See ART SOCIETY on Page 12 bloomberg news February 1, 2010 | Crain’s New York Business | 3 20100201-NEWS--0004-NAT-CCI-CN_-- 1/29/2010 7:39 PM Page 1

Going full circle: from bank IN THE MARKETS to hedge fund and back again by Aaron Elstein

Talent migrates funds had even returned to their high-water mark, the point at which back to banks; managers can start taking their cut. Playing the green card reforms may halt it Meanwhile, big banks that sur- vived the crisis are reporting record at American Express trading revenues, have access to BY HILARY POTKEWITZ large pools of capital and have been ast year was the least eagerly offering hedgies attractive profitable 365 days American since last fall, executive recruiter compensation packages, despite Express Co. Claude Schwab, partner at hedge bloomberg news bonus caps. L has seen since fund hiring expert Heidrick & Strug- BANK ON IT: President Obama plans reforms. The prospect of managing, say, 2001. Earnings could remain under gles,has been fielding numerous calls $300 million for the proprietary pressure this year as the credit-card from fund managers “exploring their trading desk at a bank—where the options.”It was a new twist for the in- hedge fund Cerebellum Capital. In payout may be 10% of total assets, reform law enacted last spring dustry veteran, hearing from hedge mid-January, Morgan Stanley’s for example—became much more begins to bite and consumer fund executives interested in leaving prime brokerage unit named its new attractive than managing a $100 spending remains in the dumps. So their private investment perches for head of capital raising in Asia, a for- million hedge fund that has yet to naturally, Chief Executive Kenneth the trenches of big banks. mer chief executive of Hong Kong- regain its high-water mark. Chenault “We saw a reversal,” he says. based hedge fund Hindsight. But without the proprietary (right) has been awarded “The winds became favorable to- trading business, commercial banks ward the banks.” Sinking ship would lose their current edge.“Bank a hefty raise. could also re- That is, until late last month, other departures from the hedge holding companies would be forced AmEx last week revealed it flect the grow- when President Barack Obama an- fund world include Neil Mason, under the Obama proposal to spin would boost Mr. Chenault’s 2010 ing sense that nounced plans to bar commercial who left his post as chief investment off or sell proprietary trading and al- base salary by 60%, to $2 million. performance at banks from running the kind of in- officer of FRM Capital Advisors to ternative investments businesses,” (The vice chairman, chief informa- banks and cred- house, or proprietary, trading oper- become chief risk officer at Harvard predicts the Web site FINAlterna- tion officer and chief financial offi- it card compa- ations that have produced outsize University’s endowment. Chang- tives.com. cer also got salary increases.) At the nies simply won’t profits at Goldman Sachs and other hong Zhu, who managed hedge That may not be a bad thing for same time, AmEx said it would re- be as good as it banks.Thud. Mr. Schwab now calls fund investments for Pimco, has ambitious hedge fund folks. duce the amount of cash bonuses once was, owing this period the “Obama cloud,” as been hired by one of China’s sover- “For some of our portfolio man- and other “incentive awards” grant- to the sluggish economy bloomberg news job candidates sit tight and try to eign wealth funds. agers, that’s the best of all possible ed to Mr. Chenault in the future. As and increased regulation, so there’ll figure out how new rules in Wash- It’s easy to see why. Hedge funds worlds,” Mr. Schwab says. “They is typical for CEOs, these bonuses be fewer opportunities for big bonus ington might change the business. have been dropping like flies during can join a prop desk and get ‘spun- have constituted the vast majority of payouts. Among the top managers who’ve the financial crisis—1,500 funds out’—and then, essentially, they’ll Mr. Chenault’s pay, which totaled Moody’s noted in a report last recently left hedge funds is Bank of closed in 2008,and 750-plus were liq- be at a hedge fund again. Only with $34 million in 2008,the most recent week that the Obama administra- America’s newly appointed head of uidated in 2009. Most had lost about a larger pool of money,which is what year for which data are available. tion’s proposal to tax banks based on global markets and research, Mi- 20% of their assets.As recently as De- they’re after anyway.” That sort of shift is becoming their size could be just a taste of chael Dubno, lured away from cember,fewer than one in three hedge So much for reform.  more common in the financial serv- harsher measures to come. (The tax ices world. Morgan Stanley and would cost AmEx an estimated $175 Wells Fargo have also hiked base million per year, equal to about 10% salaries for top executives while re- of 2009’s net income.) Big banks and ducing performance-based goodies. financial institutions like AmEx, In part, the institutions are reacting Moody’s warned, “may have to settle to political pressure.But the move to for a lower stock-price multiple and higher—and guaranteed—salaries a more utility-like existence.” Speaking of executive pay… …and what not to do about it. Assurant Inc., a Manhattan insurer, on Jan. 21 agreed to pay a $3.5 mil- lion penalty to the Securities and Exchange Commission for alleged- ly overstating earnings. According to the SEC, Assurant overstated profits by about 10%, or $6.4 million, back in the third quar- In hindsight, of course, the per- ter of 2004.It did so by entering into formance wasn’t quite as commend- a $10 million contract with another able as advertised. The $6.4 million insurer that didn’t involve transfer- overstatement amounts to almost ring risk. The SEC says this “hand- 2% of Assurant’s $350 million in shake agreement”between Assurant profits that year, suggesting Mr. and the other party was effectively a Clayton should return around deposit with another institution,not $150,000 of his pay to the company. a legitimate insurance policy.Assur- After all, plenty of financial institu- ant settled the case without admit- tions nowadays have unveiled plans ting wrongdoing. to claw back pay based on bogus But get this: Also back in 2004, numbers. the Assurant board awarded $8.1 Assurant, however, has no plans million in salary and bonus to the to seek payback from Mr. Clayton. chief executive at the time, J. Kerry “The matter is now resolved,” a Clayton, citing the company’s “com- spokeswoman says. “We are focus- mendable performance.” ing on the future.” 

THE AMOUNT of “risk-based capital” at USA Bank of Port Chester, N.Y., which in December was ordered by federal 7.48% regulators to raise more cash, according to a document released Friday. Banks whose risk-based capital level falls below 8% of assets are considered to be undercapitalized.

4 | Crain’s New York Business | February 1, 2010 Project2:fp template.qxd 1/27/10 11:48 AM Page 1

YOU WORK ALL OVER. SHOULDN’T YOUR 3G? PUT YOUR BUSINESS ON THE MAP.

More small businesses choose Verizon Wireless than any other wireless carrier. Maybe it’s because of our map. The one that has the most 3G coverage in America. The one that makes for powerful, reliable solutions for your business. So you can be as productive on the road as you are anywhere else.

BUY ONE BLACKBERRY® AND GET ANOTHER FREE! Free phone must be of equal or lesser value. All phones require new 2-yr. activation on a voice plan with data pak $29.99 or higher.

BlackBerry Storm2™ Wi-Fi enabled, ultra responsive $179 99 $279.99 2-yr. price – $100 mail-in rebate debit card.

NEW! BlackBerry Tour™ BlackBerry Curve™ Fastest BlackBerry processor Wi-Fi enabled with with global capabilities support for popular apps $ 99 $ 99 99 49 $199.99 2-yr. price – $100 $149.99 2-yr. price – $100 mail-in rebate debit card. mail-in rebate debit card.

Let a Small Business Specialist nd you the right smartphones at the right price.

Call 1.800.VZW.4BIZ Click verizonwireless.com/onthemap Visit a Verizon Wireless Communications Store Activation fee/line: $35 ($25 for secondary Family SharePlan® lines w/ 2-yr. Agmts). IMPORTANT CONSUMER INFORMATION: Subject to your Major Account Agreement or Customer Agreement, Calling Plan, rebate form and credit approval. Up to $350 early termination fee/line and other charges. Device capabilities: Add’l charges & conditions apply. Offers and coverage, varying by service, not available everywhere. Network details and coverage maps at verizonwireless.com. While supplies last. Shipping charges may apply. Rebate debit card takes up to 6 weeks & expires in 12 months. Limited-time offer. Map doesn’t guarantee coverage, contains areas with no service, and generally predicts where rates & outdoor coverage apply. Equipment, topography and environment affect service. Small Business claim: Results based on an independent research study of 3,429 single-location firms with 1-49 employees using corporate-liable wireless service. Telephone interviews were conducted between 4Q08 and 3Q09 with the employee most knowledgeable of telecommunications service. © 2010 Verizon. 98714 20100201-NEWS--0006-NAT-CCI-CN_-- 1/29/2010 5:52 PM Page 1

NEW YORK,NEW YORK edited by Valerie Block

An Intrepid errand of mercy ntrepid sea-air-space museum president Bill White (right) sprang into action when the Iearthquake hit Haiti.Through the foundation’s military connections and some well-heeled friends, he’s managed to ship 300,000 pounds of lifesaving supplies to the stricken nation. Real estate developers , Joseph Moinian and Steven Fisher, a member of the Intrepid museum’s founding family, were among the moguls who raised more than $100,000 to fund the mission. Manhattan-based construction company SG Blocks donated six 50-foot containers, which were then filled with food, water, medical supplies and clothing collected by livery drivers and their networks.They are expected to reach Haiti on Tuesday. After they’re emptied, the reusable containers can be used as shelter or even a makeshift OR. Mr. White flew by private jet to Haiti last week to make sure that the supplies will be distributed where they are most needed. He met with Dr. Dianne Jean-Francois, who runs the Catholic Medical Mission Board in Haiti, as well as with military commanders. “Maybe some people won’t have to die from lack of hydration because of what’s in those containers,” says Mr. White. “It’s amazing what a $20 bag of IV antibiotic can do.”

upgrading the restaurant’s Ms. Brin, 62, convinced Broadcasters mum kitchen, menu and decor. investors to pony up hundreds of on ad bonanza “We want to add more thousands of dollars, and has innovative dishes and put food out signed on major sponsors like broadcasters can expect a more quickly,” says longtime Raymond James and Olay. windfall from corporations and general manager Bart Alexander. “Women over 50 have more unions pouring money into “We’ll be able to grill our burgers spending power and discretionary political advertising, now that the faster with a new broiler.” income than any other group in Supreme Court has lifted the nation,” Ms. Brin says. restrictions on spending by those groups. Media economist and consultant Jack Myers thinks the We’re not all court decision could bring a boost Olympians of $300 million to $500 million to the local TV market in 2010, and new york’s contribution to the up to $1 billion in incremental ad Winter Olympics in Vancouver spending across all media during will extend beyond athletes.The presidential campaign years. funky bus shelters and bike racks The biggest potential winners The eatery also wants to have in the athletes’ village were in 2010 include the CBS and ABC some fun with the retractable designed by local firm Urban station groups, according to a study awning that shades its outdoor Movement Design.The by media banker Michael Alcamo. seating area. “We’ll do a seasonal stationary structures were created Both groups have hotly contested awning that [reflects] the sports with mobility in mind. elections in 60% of their markets. seasons, like pinstripes for baseball The bike racks will not only Just don’t ask local GMs to talk and brown for football,” Mr. hold the vehicles but will also about it.The major station groups, Alexander says. offer support to cyclists who want including those owned by NBC, Green would have been the to stretch before or after their CBS and Fox, passed on requests color of on Feb. 7 had the rides. Similarly, each bus shelter last week to discuss the riches they Jets made the Super Bowl. Despite has five different seating choices, stand to reap. “This is a political their absence from the big game, including reclining. hot potato,” say Mr. Myers. Station Mr. Alexander says the restaurant Robyne Kassan, who owns the execs don’t want to draw any will be full. “We’ll be ordering firm with partner Sarah Gluck,says attention to themselves, especially extra beer and food, for sure.” an event like the Olympics is a with Congress considering new natural fit for the company, which restrictions. If there’s any testifying, has designed a shower chair for they don’t want to be called to For women of a polio victims and a sofa for the Washington for a starring role. certain age wheelchair-bound.  move over, More magazine: Contributors:Theresa Agovino, A sports bar Faboverfifty.com is set to launch Lisa Fickenscher, Matthew Flamm, for all seasons on Feb. 18.The brainchild of Geri Miriam Kreinin Souccar Brin, a former editor and publisher mickey mantle’s Restaurant and at Fairchild Publications, the site Sports Bar is gearing up for more will feature articles on issues like than just the Super Bowl these menopause, fitness and travel. days. A mainstay on Central Park Already, Ms. Brin has South for the past 22 years, the interviewed 86 women, including sports shrine just re-upped its bold-faced names like author Suzy lease for another 10 years. Now Welch and Hearst Magazines owner and chef Christopher Villano president Cathie Black, and posted is sinking some dough into their favorites.

6 | Crain’s New York Business | February 1, 2010 20100201-NEWS--0007-NAT-CCI-CN_-- 1/29/2010 5:53 PM Page 1

at B. Riley & Co. At the Lady Foot Locker divi- Foot Locker faces high hurdles sion,Mr.Hicks must figure out who his core female consumer is—be she a teenage girl, a soccer mom or a Pi- than 6% in the past two years,falling the first time by sales of running its hat on the basketball business, lates professional. One bright spot New chief starts cuts to $42.3 billion,according to market shoes, which claimed almost 25% of and with that not being as good as it for the division is Skechers Shape- at sneaker chain as research firm NPD Group Inc. market share nationwide versus bas- was, things will be challenging for ups, which are supposed to tone Foot Locker has reduced inven- ketball shoes’ roughly 18%, accord- them,” says Sam Poser, an analyst muscles as they’re worn.The sneak- issues of inventory, tory by about 20% since 2007,but its ing to NPD. with Sterne Agee & Leach Inc. ers are expected to continue to be a mix give rivals an in stores still carry too much merchan- The shift in sneaker tastes hurt Chains like Jimmy Jazz and the hit with women. dise. The company also faces in- Foot Locker’s bottom line.For its fis- Downtown Locker Room, a city re- “The [toning] category is going creased competition from rivals like cal third quarter ended Oct.31,Foot tailer based in Hanover, Md., also to be a big driver for women in BY ADRIANNE PASQUARELLI Finish Line and Brooklyn’s urban- Locker logged $1.2 billion in sales, are stealing market share as they tar- 2010,” says Sterne Agee’s Mr. Poser. wear Jimmy Jazz chain, and con- a 7.3% drop versus the year-earlier get trend-conscious urban cus- foot locker inc. is hoping for a sumer interest in its Lady Foot period, and reported a $6 million tomers. In addition, Foot Locker European upswing perfect fit with its new chief execu- Locker unit continues to wane. loss. By comparison, Finish Line, lacks variety: 64% of its revenue foot locker can list other posi- tive, Ken Hicks. The former J.C. which primarily sells comes from Nike products. tives, including a turnaround in the Penney president was hired over the Stepping up to the task running shoes, To cut costs and improve service, European market. Four years ago, summer to turn around the long- mr.hicks, who was not available for saw nearly flat Mr. Hicks is focusing on slicing the chain was struggling to appeal to ailing sneaker chain, and he is al- comment, has a leg up in the sales for its most Foot Locker’s store count. The re- shoppers on the Continent. It has ready taking steps to bolster the footwear industry, having served as recent quarter, tailer now has six different store made headway: The retailer’s more franchise by closing stores and president of value retailer Payless ended Nov. 28, concepts, including Lady Foot than 500 European stores are trimming staff. ShoeSource for three years before and a $6.6 mil- Locker, Kids Foot Locker and among its best performers, accord- “He’s starting to put his mark on his seven years at Penney. lion profit. Footaction. At the Roosevelt Field ing to analysts. Indeed, Foot Lock- the company,” says Matt Powell, a “Ken is a very well-schooled ex- “Foot Lock- mall in Queens, for example, Foot er is expected to open 50 more Eu- footwear analyst with Princeton Re- ecutive,” says Matthew Rubel, chief er hangs Locker operates four dif- ropean outposts this year. tail Analysis, who notes that some executive of Collective Brands Inc., ferent stores. Additionally, the company fixes are “low-hanging fruit.” owner of Payless. Mr. Rubel did not Mr. Hicks shut bought skateboard brand CCS from But Mr.Hicks faces plenty of ob- overlap with Mr. Hicks at Payless, down 117 of the com- teen retailer Delia’s in September stacles as he tries to put Foot Lock- but he knows him as a competitor. pany’s 3,600 stores 2008 for what many observers con- er back on track. “He understands how to buy last month. Experts sider a bargain price of $102 million. During the 1990s, the chain brands and resell them,but also how predict there will be The line, which was formerly sold snapped up locations and expanded to build them,” Mr. Rubel adds. more closures. only via catalogs and e-commerce, rapidly as eager shoppers went after Mr. Hicks might want to start ADDING HIS STAMP: “Foot Locker is now has two stores—and consider- the hottest Nike shoe.Those days are by rebuilding consumer interest Ken Hicks, a “well- overstored in able growth potential. over. Sales for the $5.2 billion Man- in basketball shoes, a niche that schooled executive,” places they don’t “It gives Foot Locker an entry gained footwear hattan-based retailer have not Foot Locker has traditionally experience at Payless. need to be,” says point for the action sports market,” grown since 2006, and U.S. sales of emphasized. Over the holiday Jeff Van Sin- says Mr. Powell of Princeton Retail athletic footwear have dropped more season, sales were outpaced for deren, an analyst Analysis. 

Redeemed rewards for cash to put back into the business.

Monthly rewards limits apply. Customer purchases checks. Transaction limitations apply to checking account. Free Online Bill Payment Service is not intended for use by commercial and institutional clients with greater than $10 million in annual sales. Limit one Small Business Rewards Checking account per customer. See www.capitalonebank.com/businessrewards for complete terms and conditions. Offered by Capital One, N.A. ©2010 Capital One. All rights reserved.

February 1, 2010 | Crain’s New York Business | 7 20100201-NEWS--0008-NAT-CCI-CN_-- 1/29/2010 7:39 PM Page 1

that if Albany hands down a state cut much smaller than that gap, he will have no choice but to slash 19,000 ONLINE EFFORT Ford-slamming THE INSIDER employees from the city’s payroll. WHAT HAROLD FORD JR. (left) describes as a “smear The $500 million reduction in campaign” against him is gathering steam on by Erik Engquist and Daniel Massey state education aid would wipe out YouTube, providing a preview of what negative more than 8,000 teachers, he said, from Sen. Kirsten Gillibrand might look like if Mr. because at the Department of Ford challenges her in the Democratic primary. Ms. Education, “there’s nothing they Gillibrand, despite her own vulnerabilities, has can cut other than people.” gotten a pass so far from the YouTube crowd. The point of making the state Left-wing outfit BraveNewFilms.org has posted a cuts seem awful, of course, is to two-minute compendium of Ford video clips persuade the Legislature to reduce depicting the former Tennessee congressman’s views them.To that end, the mayor is as conservative when it comes to abortion, gay laying out a worst-case scenario marriage, immigration, guns, George W. Bush, when describing the cuts’ impact, military tribunals, wiretapping, school prayer and citing every vulnerable constituency flag-burning. Titled Meet Harold Ford Jr.: Ann he can think of. Besides teachers, the city would lose police officers, Coulter’s Favorite Democrat, it was viewed more than firefighters, child welfare workers, 67,000 times in its first week alone. Naral Pro-Choice 500 soup kitchens, 15 senior centers New York, Planned Parenthood Advocates of New York and pro-immigrant and 900 jail workers—meaning that group Make the Road New York are listed on the Web site as partners. Another YouTube post, a 14-minute production by Cenk Uygur of

nyc.gov spencer tuckernyc.gov 1,900 criminals would be set free. It was a brilliant performance by TheYoungTurks.com, belittles Mr. Ford on subjects ranging from his political a straight-talking mayor who eight views to the helicopter trips and pedicures he described in an interview with years in has mastered the art of spin. . It is averaging more than 1,500 views per day. Mr. Uygur Mike’s two-edged points out that the former legislator believes that bankers and traders should not have compensation caps but “should lose” if they don’t perform well. Yet, Minimum wage, Mr. Uygur notes, Mr. Ford blasted Ms. Gillibrand for voting against the bailout budget analyses maximum attention of bankers who lost billions. No damning videos have been posted yet about Ms. Gillibrand, even wage and hour cases are though she has been accused of pandering to conservatives on gun control resenting the proposed city budget might be proliferating for financial and and immigration when she represented an upstate congressional district. She Mayor ’s favorite activity. Last political reasons, according to also did extensive legal work for the tobacco industry, throwing herself into lawyers who work in the field. the case with great enthusiasm, according to a Times story. Mr. Ford’s week, he again held court in the Blue Room at City Cases often involve powerless potential candidacy has spurred talk that Ms. Gillibrand does not connect as Hall before dozens of reporters. He displayed immigrants who were denied well with audiences and lacks Mr. Ford’s retail political skills. overtime or paid less than

charts and graphs and delved into details like an newscom minimum wage. For elected Peconomics professor, characterizing his budget as a responsible officials like Attorney General business owners who lose in court Legislature. In some cases, the if not pain-free way to close a $4.9 billion deficit. and for law firms that are personally liable for damages problem is endemic dysfunction. But the $1.3 billion in aid cuts proposed by the state, he do pro bono work, pursuing such and plaintiffs’ legal fees. As one former state legislator puts insisted, would wreak havoc on the city’s workforce. Somehow cases curries favor with Latinos—a it, “Under the best of circumstances large and growing constituency. in Albany, when everybody agrees he pulled it off; not a single reporter asked how he found Negotiating settlements is easier Plugging hole in on everything, there’s only a 40% palatable ways to close a massive budget gap while asserting than it is in other lawsuits, because unemployment fund chance it will get done.” new york state’s unemployment fund has borrowed $2.4 billion Interim bill puts from the federal government to stay transit funds at risk afloat. Only California (which needed $6.8 billion) and Michigan a new six-year transportation bill ($3.3 billion) have borrowed more, that promises to be a financial boon ANNUAL DINNER according to ProPublica. Nine for New York could be postponed states’ funds are insolvent. for two years to make room for an FEBRUARY 21, 2010 • THE NEW YORK HILTON interim measure.That prospect RECEPTION 5:30PM • DINNER 6:30PM carries both risks and opportunities Looking harder for the city and the state, says Rep. for union label Jerrold Nadler (below). HONORING The replacement bill would dissatisfaction with albany meet immediate infrastructure MOISHE HELLMAN has prompted United Food and needs and would also function as a GLORIA & HARVEY KAYLIE President, Guests of Honor OHEL Bais Ezra Commercial Workers Local 1500 jobs bill. Congress appears to to revamp its endorsement process. consider such a hybrid bill more RONNY HERSH A.J. & LEAH SCHREIBER President, UFCW is doing away with most palatable than a second so-called Community Leadership Award Lifetime Care Foundation early decisions and will no longer stimulus package. But the for the Jewish Disabled HY HETHERINGTON back incumbents just because interim bill might lack DAVID MANDEL they’re incumbents. It will the programmatic CEO, Superior Glacier • Managing Partner, Founder, HLP Integration Chief Executive interview more candidates and ask changes destined to be O!cer Corporate Man of the Year tougher questions. in the six-year bill, such RACHEL & JONA RECHNITZ “Our membership reads the as an increase in the Young Leadership Honorees paper, they’re not happy with Albany percentage of money and they want to know why we’re designated for mass transit. THE BERT FRIED & LEON HOFMAN FAMILIES endorsing all these people,” says Pat The last six-year bill spent 20% Community Partnership Award Purcell, assistant to the president. of gas-tax revenue on transit.The in Mental Health Members are particularly upset new bill will raise that to 30%, that the Domestic Workers Bill of which will benefit transit-heavy Rights has yet to become law.“They New York City. Mr. Nadler, the THE HONORABLE ANDREW M. CUOMO THE HONORABLE SHELDON SILVER can’t believe this is going to be their senior Northeast Democrat on the NYS ATTORNEY GENERAL SPEAKER, NYS ASSEMBLY fourth year going to Albany to get House Transportation and Keynote Speaker Honorary Chairman this passed,” Mr. Purcell says. Infrastructure Committee, says he UFCW’s experience contradicts will fight for dedicated funding for the common notion that politically freight trains and shipping projects FOR RESERVATIONS OR TO PLACE JOURNAL ADS CONTACT OHEL AT: active special-interest groups get in the next bill. It’s a tough sell, he WEB: www.oheldinner.org • TEL: 888.311.OHEL or 718.972.9338 whatever they want from the says, because “freight doesn’t vote.”  FAX: 718.851.2772 • MAIL: 4510 16th Avenue, Brooklyn, New York 11204 • EMAIL: [email protected] For daily political and government news, subscribe to CRAIN’S INSIDER @ www.crainsnewyork.com/insider

8 | Crain’s New York Business | February 1, 2010 20100201-NEWS--0009-NAT-CCI-CN_-- 1/28/2010 5:47 PM Page 1

REAL ESTATE DEALS PLUS

Two renewals, Meyer represented Lehr in the deal. repped by Ripco Real Estate Corp.’s Tenants saved They also represented landlord 902 Brad Cohen and Scott Auster. one newcomer Associates in all three transactions. —adrianne pasquarelli —theresa agovino three tenants signed leases for a Eatery savors by the recession total of 66,000 square feet at 902 Falling rents Broadway,a building that has been un- Times Sq. bargain he depressed state of the city’s real estate dergoing renovations over the past embolden retailers two years. The the main drags in Times Square market is allowing a cluster of bedding and home asking rent for all rents have dropped in the design still command high rents, but side furnishings companies to sleep a lot easier at night. three deals was district of midtown east enough for streets are a different story, brokers Pacific Coast Feather Co., a manufacturer of $38 a square foot. some merchants to expand. Josh say. Tom and Toon, a new Ameri- down bedding, and Bardwil Industries, a maker of Ad agency Nazmiyal, a rug seller who has a lo- can-Thai fusion eatery from chef Cramer-Krasselt cation in the area, recently signed a Toon and Westchester restaurateur Tfine kitchen and bath products, recently renewed their leases is leasing 16,500 10-year lease for his second shop, at Thomas Rolston, recently signed a for 14,000 square feet at 1071 Sixth Ave. for 10 years.The square feet. The 1111 Second Ave. The asking rent for 15-year lease for 2,500 square feet at asking rent was $46 per square foot for Pacific Coast’s space agency plans to the 3,700-square-foot space was 245 W. 51st St. move during the about $125 a square foot. The asking rent was about $105 a and $39 per square foot for Bardwil’s lease for 18,000 square feet at 136 902 Broadway third quarter, says Rents in the neighborhood have square foot. Retail rents along space,but both paid well below that. Madison Ave., according to Christel its broker, Robert dropped by about 25% to 30% from Broadway and Seventh Avenue are “These companies are leaders in Engle of FirstService Williams. Silver of Newmark Knight Frank, their 2007 highs, brokers say. near $500 a square foot, says Aaron their industry,but there was talk that Ms. Engle and colleague Michael who represented the company with “There are a lot of vacant spaces, Gavios, the Square Foot Realty bro- the whole industry would move out Thomas represented the landlord. his colleague Scott Brown. so there’s the opportu- ker who,along with col- of the city because of costs,” says Sunham, which owns a five-story Mr. Silver says the agency was nity to get a good space league Julia Maksimo- David Levy of Adams & Co. Real building at 308 Fifth Ave.,decided to drawn to the building because of its for a good price,” says va,represented landlord Estate, who, along with colleague lease out its smaller 15,000-square- reasonable rent, large windows and T.J. Muncan, the New- $13M Gilar Realty. Jeffrey Schwartz, represented the foot space and move into a bigger,sin- good location. mark Knight Frank Average sale price of “Side streets are get- landlord. “This market has given gle-floor space. “We took advantage Meanwhile, Roadrunner Rec- Retail broker who, Manhattan commercial ting even less than half them the opportunity to stay.” of an extremely aggressive market,” ords Inc., which specializes in heavy along with colleague buildings in 2009 the price of the av- Pacific Coast was represented by says Daniel Katcher of Newmark metal bands, renewed its lease for Craig Slosberg, repre- enue,” says Mr. Gavios. Heather Sloan of Cushman & Wake- Knight Frank, who represented Sun- 16,500 square feet for five years. sented Mr. Nazmiyal. Tom and Toon,rep- field Inc., while Bardwil was repre- ham with colleague Jeff Landis. Cushman & Wakefield Inc. repre- He notes that furniture resented by Shelton sented by Jeffrey Peck of Studley. These recent moves follow JLA sented the tenant. retailer Auffrance re- -75. 2% Franklin of S. Blair Decline from peak in Similarly, Sunham Home Fash- Home’s expansion in November at Lastly, Lehr Construction added cently took space in the 2007 Partners Ltd., plans to ions, a large importer of home tex- 11 E. 26th St., where it occupies seven years to its lease for 33,000 area. open by May 1. Source: Massey Knakal Realty tiles, just consolidated its office and 36,200 square feet. square feet. FirstService Williams Landlord the Ol- Services —adrianne showroom space and signed a 10-year —amanda fung brokers Perry Mesmer and Marty nick Organization was pasquarelli

You see an opportunity to grow your business. We see an opportunity to help.

Pay only for the communications your business needs.

Youu know that a great idea and hard work can Call 1.877.769.2934 taketakk your business to the next level. But with Get Business News Cable TV, or visit www.twcbc.com/nyc thee proper tools, you can grow your business Internet and Business Class Phone evenevee more. At Time Warner Cable Business ClassClaa ®, we work with you to make sure you 95 INTERNET | PHONE | CABLE TV | ETHERNET gett the right mix of Internet, Phone and Cable for only $ TVT services for your needs. each 39per month! OurOOuuru local, dedicated representatives will help Act by 3/31/10. ddedeliverel the right mix of communication solutions.

Offer valid for new business customers only with a two-year agreement. Includes up to 7Mbps x 768Kbps of Internet, one line ofBusiness Class Phone service on the unlimited local and nationwide long distance calling plan (in the , Canada, and Puerto Rico) and Business News Cable TV. Additional lines charged at standard price for any calling plan (discount may apply). Standard installation rates and construction costs (if applicable) apply. Offer not transferable and may not be combined with any other offer. Excludes applicable taxes and fees. Early termination fee may apply. Business Class Phone does not include back-up power and should there be a power outage, Business Class Phone, including the ability to access 911 services, may not be available. Additional charges apply for taxes, fees, Directory Assistance, Operator Services and calls to International locations. Offer valid for new business customers in Business Class serviceable areas (excluding bars and restaurants). Actual speeds may vary. Offer may not be available in all areas. Time Warner Cable Business Class reserves the right to discontinue any feature or offer at any time. Subject to change without notice. Contract must be signed by 3/31/10 to take advantage of the offer. Products and services not available in all areas. Some restrictions apply. Time Warner Cable Business Class is a trademark of Time Warner Inc. Used under license. © 2010 Time Warner Cable, Inc. All rights reserved. 17485-20491-1209BSq1growth_2

February 1, 2010 | Crain’s New York Business | 9 20100201-NEWS--0010-NAT-CCI-CN_-- 1/29/2010 1:45 PM Page 1

VIEWPOINT The best route for St.Vincent’s editor in chief Rance Crain publisher, vp Jill R. Kaplan ontinuum health partners’ offer to burdensome debt, but also valuable real estate that could be EDITORIAL acquire St. Vincent’s Hospital Manhattan sold to retire that debt and build a new medical facility—a editor|editor of the editorial board and reduce it to a clinic has triggered a net plus for the community. Xana Antunes managing editor Glenn Coleman predictable outcry from elected officials The troubles of Saint Vincent Catholic Medical Centers deputy managing editors Valerie Block, and civic leaders.They lament that have been well-documented. Last week, it blamed its woes Erik Ipsen contributing editor emergency care and other medical on state budget cuts Elizabeth MacBride services would become inconvenient for over the past two years. columnists Greg David, Alair Townsend politics editor Erik Engquist and West Side residents. Low Medicaid pulse editor Barbara Benson But, not surprisingly, no one has offered a better solution reimbursements senior reporters Theresa Agovino, C Aaron Elstein, Lisa Fickenscher, for the debt-ridden hospital. Some have said the state is certainly played a role, Matthew Flamm, Miriam Kreinin Souccar reporters Amanda Fung, Daniel Massey, obliged to keep a full-service medical center in the area, but but its botched Adrianne Pasquarelli, Hilary Potkewitz the state Department of Health called that bluff by bankruptcy art director Steven Krupinski deputy art directors Carolyn McClain, challenging them to come up with the $5 million to $10 reorganization and bad Daniel Mednick million that St. Vincent’s is losing every month. management decisions staff photographer Buck Ennis Government has copy desk chief Wendy Zuckerman Even if the state or the city government—which face are largely to blame. Its copy editor Thaddeus Rutkowski budget deficits of a combined $12 billion—were inclined to neither the funds main hospital is known research editor Denise Southwood assistant research editor Maia Blume save St. Vincent’s, doing so would set a dangerous and nor the obligation for taking on more editorial/research interns Emily Laermer, Selena Shen unsustainable precedent. Numerous hospitals across the city medical residents than www.crainsnewyork.com have been bleeding red ink for years; the government cannot to save hospitals it needs, and while it is web editor Brian Tracey senior producer Elisabeth Butler Cordova be expected to keep them afloat. Indeed, when failing paid to train them, their producer Kira Bindrim hospitals close, it makes the city’s health care system stronger exorbitant number by reducing the oversupply of beds and shoring up the EDITORIAL AND ADVERTISING OFFICES creates operational 711 Third Ave., New York, NY 10017-5806 finances of struggling competitors. inefficiencies. editorial: 212.210.0277 Fax 212.210.0799 advertising: 212.210.0259 That is precisely what would happen if Continuum is St. Vincent’s also lacks big, lucrative specialty units. It Cable craincom nyk allowed to shrink St. Vincent’s into an outpatient clinic provides services of great social value to the community— Fax 212.210.0499 Entire contents ©copyright 2010 Crain offering limited emergency care. Many patients needing mental health care and treatment for substance abuse and Communications Inc. All rights reserved. ®CityBusiness is a registered trademark of MCP trauma care or hospitalization would be diverted to Beth HIV/AIDS—but these are not big moneymakers. Inc., used under license agreement. Israel Medical Center or Roosevelt Hospital, both The Continuum deal would preserve many of these TO SUBSCRIBE: Continuum facilities that need a bottom-line boost.Trying services, stave off another bankruptcy filing and improve the Call 888.909.9111; fax 313.446.6777. $3.00 a copy, $59.79 one year, $109.79 two years. to preserve a financially gangrenous limb like St. Vincent’s fiscal prognosis for Continuum’s other facilities as well. It is www.crainsnewyork.com would not merely postpone the inevitable; it would risk the not the most orderly way to restructure New York’s sickly loss of other hospitals as well. hospitals, but, as they say about getting old, it certainly beats ADVERTISING AND MARKETING advertising director Trish Henry Were Continuum to take over, it would inherit the alternative. real estate sales manager Cornelius P. Gore senior account managers Irene Irvill, Courtney McCombs, William E. Squitieri account executives Anthony Mowad sales manager, classified CRAIN’S ONLINE POLL COMMENTS print & online John Gallagher sales coordinator, print & online Lulé Haznedari WHERE SHOULD THE TRIALS newsletter product manager Alexis Barney FOR SUSPECTS IN THE SEPT. 11 credit Todd J. Masura 313.446.6097 Local terrorist trials marketing director Amy Crossman TERRORIST ATTACKS BE HELD? circulation manager Andrea Richardson assistant circulation manager Date of poll: Jan. 26 a disturbing proposal Rosalie Ford 279 votes general manager, interactive Marc Minardo them when it is all over. web developer, interactive 9% NY TO DC: HOW ABOUT Chris O’Donnell West Worse yet: Due to some procedural 10% Point YOUR OWN BACKYARD? Lower miscue, they go free in our country to NEW YORK PRODUCTION Manhattan the best place for these trials, if they fight another day. Guantánamo is the production and pre-press director 43% must be in this country, is on the south only place for this to take place. Michael Corsi Federal advertising production manager 15% prison in lawn of the . Let Attorney —anthony forns Governors Otisville, General Eric Holder conduct the trial for Suzanne Fleischman Wies Island N.Y. the prosecution.This way, when the TRIALS WOULD SCARE PUBLISHED BY CRAIN COMMUNICATIONS INC. 23% defendants are exonerated, they will be TOURISTS AWAY chairman Keith E. Crain National right where they want to be to make president Rance Crain Guard base secretary Merrilee Crain upstate merry with their destructive desires. you can be sure that tourism in New —steven eskow York City will tank while any “terror trial” treasurer Mary Kay Crain is being held in lower Manhattan. executive vp, operations William Morrow senior vp, group publisher Gloria Scoby The choice “White Plains” got one vote, or 0%. A BAD SCENARIO —derek spisak group vp, technology, circulation, AND A WORSE SCENARIO manufacturing Robert C. Adams TAKE THEM BACK vice president/production & i can’t believe that we would bring manufacturing David Kamis TO SCENE OF THE CRIME chief information officer Paul Dalpiaz these terrorists into this country, grant corporate circulation/audience them access to our courts, give them the how about the field in Pennsylvania development director Kathy Henry opportunity for extensive propaganda where United Airlines Flight 93 crashed founder G.D. Crain Jr. (1885-1973) and expose our citizens to possible on Sept. 11? That might be highly chairman Mrs. G.D. Crain Jr. (1911-1996) For this week’s questions: retaliation. And for what? To tell the appropriate. Go to www.crainsnewyork.com/poll to have your say. world that we have a great justice —joseph peller system—then turn around and execute See COMMENTS on Page 11

10 | Crain’s New York Business | February 1, 2010 20100201-NEWS--0011-NAT-CCI-CN_-- 1/29/2010 2:47 PM Page 1

OPINION

it would lose. Mr. Ward insists only one office tower should be built be- cause the Port can’t afford to finance a second office tower and because there is no market for it. His posi- tion has been immeasurably strengthened. THE CITY hasn’t always helped the already complicated relationship between Mr. Silverstein and the Port. Officials claim to have consis- tently argued for a reasonable com- promise, but in fact each time the mayor has distilled the city’s posi- tion into sound bites, he has favored one party or the other.Lately,he has seemed to side with Mr. Silverstein, stiffening Mr. Silverstein’s leg- endary unwillingness to give ground in negotiations. THE DOWNTOWN MARKET, said one real estate expert last week, is excep- tionally fragile. Goldman Sachs, Merrill Lynch, Nomura and AIG are moving to new locations or

bloomberg news downsizing.The two towers already under construction—World Trade Center Tower 1, which the Port is building, and Mr. Silverstein’s first Larry and the Port: office tower—add 2 million square Steven Mayer, CPA feet of speculative office space to this 6 East 43rd Street weak market. New York, NY 10017 THE RATIONALE for siding with www.amper.com 212.682.1600 a dispute unraveled Mr. Silverstein is that New York sm “Seeing Beyond the Numbers...” [email protected] has built very little modern, green, ruling by an arbitration panel this week on efficient Class A office space in the past two and the lack of the bitter dispute between developer Larry Silver- such space will cripple the econo- stein and the Port Authority of New York and my in the future. The problem is over how to rebuild the World Trade real, but for Mr. Silverstein’s build- ings to be filled without bankrupt- Center changed the dynamics of the dispute but ing other downtown properties,the Asolved nothing.Here’s the insider’s guide to the players and what city’s economy will have to be is at stake. booming when they open later this decade. MR. SILVERSTEIN had ers he is scheduled to THE SOLUTION: The arbitrators expected the panel to construct. Instead, he gave the Port and Mr. Silverstein 45 award him a huge set- won nothing as the ar- days to resolve the dispute. If that tlement—maybe even bitrators ruled that his doesn’t happen, they will impose a $1 billion—for what he inability to obtain fi- solution, and all indicators show charged was the Port’s nancing was the deter- they will side with the Port. incompetence in doing mining factor. In the end, the same resolution the work required for THE PORT AUTHORITY, that has been possible for a year is him to begin construc- in a gamble by Execu- available today.Remember, Mr. Sil- tion under the rebuild- tive Director Christo- verstein has virtually no money at ing plan. The award pher Ward, went to ar- risk at the World Trade Center. If would have forced the GREG bitration rather than he is convinced the second tower Port to agree to finance DAVID compromise, despite a will be a success, he can raise the eq- at least two, if not all nearly universal belief uity—about $1 billion—to show he three, of the office tow- in real estate circles that believes what he says.

COMMENTS

Continued from Page 10 against our music and games. For EDITORIAL WAS OFF TRACK decades, our operators have been IN AT LEAST ONE WAY told they cannot offer any devices that even hint of gambling. So why, re: your editorial “Best for all of a sudden, for the convenience preserving OTB” ( Jan. 18). You of OTB, have these fears of should know that the Amusement wagering evaporated? and Music Owners Association of OTB has been a failed business New York is opposed to attempts model for years, ravaged by politics. by the city’s Off-Track Betting Government leaders should not be Corp. to expand operations into undermining small tax-paying

bars, taverns, clubs and related en- newscom businesses, a number of them tertainment venues. BETS OFF: The OTB should stay out of bars. family-owned for two or more An economic leg of our niche generations, to salvage a ship which industry was amputated several already sank. years ago with the zoning tax evasion on tobacco sales. —danny frank prohibitions on cigarette Now, OTB wants to infringe on Executive director machines—only for us to see the remaining income opportunity Amusement and Music Owners Indian reservations and online Web we have left. In addition, it has an Association of New York Inc. sites rack up $500 million a year in unfair advantage when competing Woodside, Queens

February 1, 2010 | Crain’s New York Business | 11 20100201-NEWS--0012-NAT-CCI-CN_-- 1/29/2010 2:45 PM Page 1

FOR THE RECORD

Requests competitive sealed bids by by MD Carlisle Realty Corp. Gordon Commission by executives and major 10:30 a.m. on Feb. 10 for hybrid vehicles Ogden and Thomas Murray of Byrnam shareholders. Listings are in order of ABOUT THIS SECTION to be used by the New York Police Wood acted on behalf of the tenant, and transaction value.The information was FOR THE RECORD is a weekly listing of information from the public record that Department. For additional FirstService Williams’ Richard Plehn obtained from Thomson . information, contact Anna Wong at and Greg Wang repped the owner. The can help businesspeople in the New York area find opportunities, potential (212) 669-8610 or asking rent was $42 per square foot. G Tiffany & Co. (TIF) new clients and updates on competitors. [email protected]. James N. Fernandez, executive vice To ask questions or get more information on this section, contact Denise G Kreindler & Kreindler has signed a president and chief financial officer, Southwood at [email protected]. G Department of Sanitation 10-year, 11,779-square-foot lease at 750 exercised options on 340,000 shares of Seeks competitive sealed bids by 11 a.m. Third Ave. The 34-story building covers common stock at prices ranging from on Feb. 23 for providing tugboats for 857,354 square feet. The landlord, SL $25.85 to $42.08 between Jan. 14 and towing barges. Questions about this Green Realty Corp., was repped in- Jan. 15, in a transaction worth solicitation should be directed to Ed house by David Kaufman, and Jane $11,482,224. During the same period, BANKRUPTCIES $10 million and assets of $500,001 to Olsen at (718) 761-0954. Roundell, Marcus Rayner and Ken he sold 340,000 shares at prices ranging $1 million. Among the creditors with Witler of CresaPartners acted on behalf from $45.20 to $45.52, in a transaction The following listings are selected from the the largest unsecured claims are Business G Health and Hospitals Corp. of the tenant. The asking rent was $57 worth $15,469,752. He now directly most recent available filings by companies Initiative Corp. of New York, owed Requests competitive sealed bids by per square foot. holds 44,427 shares. seeking bankruptcy protection in the $458,000; and DV Trucking, owed 10 a.m. on Feb. 4 to provide and install Southern and Eastern Districts of New $61,000. partitions in the men’s and women’s G Sun Life Financial renewed its 7,200- Peter W. May, director, sold 296,600 York. Information was obtained from U.S. bathrooms on the fifth floor of Bellevue square-foot lease on the 11th floor of shares of common stock at prices Bankruptcy Court records available on Hospital. For more information, contact 1 Grand Central Place. The 55-story ranging from $45.13 to $46.14 between Public Access to Court Electronic Records. GOVERNMENT CONTRACT Sherry Lloyd at (212) 442-3863 or building covers approximately 1.3 million Jan. 14 and Jan. 19, in a transaction Listings are in alphabetical order. OPPORTUNITIES [email protected]. square feet. The landlord, W&H worth $13,531,560. He now indirectly Properties, was repped by Alison Coffey, holds 730,790 shares. G Family Fruit Farmers Market Inc. Following are selected contract G Housing Authority Ryan Kass and William Cohen of 2270 Hyland Blvd., Staten Island opportunities recently announced by New Seeks competitive sealed bids by 10 a.m. Newmark Knight Frank. Phil Giunta of Michael Joseph Kowalski, chairman of Filed for Chapter 11 bankruptcy York City agencies.To learn how to sell on Feb. 9 for preparation of 40 lunches Grubb & Ellis negotiated on behalf of the board and chief executive, exercised protection on Jan. 19. The filing cites goods and services to city government, visit and 50 dinners per day at the Saratoga the tenant. The asking rent was $47 per options on 150,000 shares of common estimated liabilities of $1,000,001 to www.nyc.gov/selltonyc. For a searchable Senior Center, Brooklyn. Solicitation square foot. stock at $42.08 on Jan. 14, in a $10 million and assets of $1,000,001 to database of current procurement notices, documents can be downloaded at transaction worth $6,311,730. On the $10 million. Among the creditors with visit www.nyc.gov/cityrecord. Listings are www.nyc.gov/nychaprocurement. For RESIDENTIAL same day, he sold 150,000 shares at the largest unsecured claims are Park alphabetical by category and department. questions regarding this bid, contact G An affiliate of Pacific Housing $45.67, in a transaction worth Place Dairy, owed $143,294.10; and Jacques Barbot at (212) 306-3265. Advisors has purchased a 229-unit, $6,851,025. He now directly holds Ranchers Best, owed $142,435.83. CONSTRUCTION SERVICES 231,233-square-foot affordable housing 364,045 shares. G Department of Parks and Recreation portfolio, known as Met Paca I and Met G Terrace Gate Realty Requests competitive sealed bids by REAL ESTATE DEALS Paca II, between East 118th Street and G Polo Corp. (RL) 5201 Second Ave., Brooklyn 10:30 a.m. on March 10 for the East 122nd Street on both sides of Ralph Lauren, chairman of the board Filed for Chapter 11 bankruptcy construction of a bicycle path in Great Companies that would like to have details Lexington Avenue. Shimon Shkury of and chief executive, sold 120,833 shares protection on Jan. 19.The filing cites Kills Park in Staten Island. A prebid of their recent transactions appear in these Massey Knakal worked for both the of common stock at prices ranging from estimated liabilities of $1,000,001 to $10 meeting is scheduled for 12 p.m. on Feb. listings should e-mail descriptions buyer and the sellers, affiliates of Security $83.42 to $85.09 on Jan. 15, in a million and assets of $1,000,001 to $10 16 at the Design Conference Room of following this format to Properties.The buildings were sold in an transaction worth $10,110,328. He now million. Among the creditors with the the Olmsted Center, Flushing Meadows [email protected], with all-cash transaction valued at $26.9 directly holds 517,329 shares. largest unsecured claims is Total Electrical Corona Park, Queens. Questions “Real estate transaction” in the subject line. million. Distributors Inc., owed $30,053.77. regarding this bid should be directed to Deals are listed in order of square footage. G IAC/InterActiveCorp (IACI) Juan Alban at (718) 760-6771 or Liberty Media Corp. sold 323,600 G Yetish Inc., DBA Yetish Pallet Inc. [email protected]. OFFICE STOCK TRANSACTIONS shares of common stock at prices 443 Coster St., Bronx G The Partnership for a Drug-Free ranging from $21.30 to $21.34 between Filed for Chapter 11 bankruptcy GOODS AND SERVICES America signed a 13,000-square-foot Following are recent insider transactions at Jan. 15 and Jan. 19, in a transaction protection on Jan. 19. The filing cites G Department of Citywide Administrative lease at 352 Park Ave. South.The New York’s largest publicly held companies worth $6,896,880. The company now estimated liabilities of $1,000,001 to Services 170,043-square-foot building is owned filed with the Securities and Exchange indirectly holds 10,879,300 shares.  Costco misses mark in Harlem Art society awakens

Continued from Page 2 counter Target Corp. opens at East Continued from Page 3 drawing boards for years, but Mr. “How exactly are people from the River Plaza in July, some fear that group was working on to 13,from 23. Cipolla says it now has a real chance. community going to come into the the Big Apple is simply oversaturat- It has finished protesting the demo- The project, a favorite of Sen. warehouse club and carry this stuff ed with discount chains. BJ’s lition of Admiral’s Row in Brooklyn Charles Schumer, is under consid- out?” asks Pat Purcell, assistant to Wholesale Club opened last week in and fighting to landmark some eration for nearly $250 million in the president of United Food and Flushing, Queens, and the retailer buildings in Dumbo. Mr. Cipolla stimulus money from Washington Commercial Workers Local 1500. has signed up for another two loca- plans to leave smaller individual proj- to start construction. “I can’t carry it around the club, let tions in Brooklyn, bringing its city ects to the numerous neighborhood “To have a great environment for alone from the club to a house.” brood to seven. preservation groups, like Landmark rail commuters and travelers is very What’s more, most Manhattan- “Some of these [chains] are West on the Upper West Side, that important,”Mr.Cipolla says.“But the ites lack sufficient space to store reaching the point where they’re go- have opened in recent years. In the even bigger opportunity is about the dozens of rolls of toilet paper or ing to miscalculate and miss the future, he hopes to start a program livability of that area and the contribu- pounds of cheese and cold cuts. mark with neighborhoods,” says offering these groups grants. tion that a new station would make.” “People having large-enough Mr. Purcell. “We need to pick the ones that are Despite these efforts, the organ- apartments to store in bulk is an ob- Costco’s relationship to its Man- important, and get involved early ization still flies under the radar vious concern,” says Anita Kramer, hattan neighborhood is also impor- on,” Mr. Childs says. screens of most New Yorkers. It has senior director of retail development buck ennis tant because of the community ben- Some groups aren’t happy with only about 3,000 members, the at the Urban Land Institute. When Costco decided to open in efits agreement signed last March this decision. “It is the prerogative of same number it has had for 30 years. Experts say membership num- Manhattan, it made a point of by developer Tiago, a partnership each organization to pick and choose Mr.Cipolla wants to increase that to bers are undoubtedly lagging expec- stocking more upscale merchandise, between Forest City Ratner Cos. what it can actually handle,”says Paul “tens of thousands” of members and tations as Manhattanites think such as 7 For All Mankind jeans and and Blumenfeld Development Palazzo,president of the Fort Greene is planning to do more marketing. twice about such issues before pay- Michael Kors jackets. Even so, ex- Group.Tiago promised city officials Association Inc.“But just cutting the “Every New Yorker and New York ing the club’s $55 annual fee. perts say,shoppers who have cars are that Costco would make a good- tether of neighborhood associations business should want to be a mem- Costco management acknowl- more likely to visit the three other faith effort to ensure that this year, like ours is setting them adrift.” ber of MAS,” he says. edges that performance is falling New York City outposts. at least 60% of workers at the Man- The society is now focused on To become more effective, the shy. hattan location come from the area. major projects like the battle against society is now working with other “Sales are good, but not as good No blockbuster expected The proportion for the third year of new zoning for high-rise develop- like-minded groups. In its push for as I expected,” says Yoram Ruba- “[retail experts] didn’t expect operation is 75%. ment in the garment district, an ad- Moynihan Station, it is collaborat- nenko, Costco’s vice president of that particular unit in Manhattan to After the recent layoffs, Mr. vocacy campaign it is just begin- ing with the Regional Plan Associ- operations for New York and New be a blockbuster,” says Maggie Washington of the local communi- ning. But most important is the ation, a nonprofit. Jersey. Gilliam, who runs retail consulting ty board suggested that Costco work fight to get Moynihan Station, a Both groups have been sending He says that many of the work- firm Gilliam & Co. “It’s easier for with the city’s Human Resources new hub for Amtrak, built on the their board members to lobby the ers who lost their jobs in January had [shoppers] to just stop off in Administration and its federal stim- site of the James A. Farley Post Of- Obama administration for the stim- been hired for the holiday season, Queens.” ulus funds to rehire some employ- fice on West 33rd Street. ulus money that could get the proj- though Costco had hoped to keep Though Costco might get a ees, but he has yet to receive a re- Developing a new rail hub in ect started. They are expecting an them on permanently. boost in foot traffic when fellow dis- sponse from the company.  Manhattan has been on and off the answer in February. 

12 | Crain’s New York Business | February 1, 2010 20100201-NEWS--0013-NAT-CCI-CN_-- 1/28/2010 5:33 PM Page 1

HE’S NO. 1: FINANCE INSIDE Our ranking BlackRock’s of New York’s top Larry Fink money managers Elite group oversees more than $12 trillion in assets PAGE 16

Q&A ‘Acting in clients’ best interests is the right way to do business’ buck ennis

Ms. Krawcheck, 45, sat down from each of those CEOs? Merrill’s Krawcheck on BofA, brokers and bosses with Crain’s Aaron Elstein last A: Lew Sanders at Sanford month to discuss the merger, some Bernstein was terrific. He was allie krawcheck got her first job on Wall Street as a junior analyst at of the people she’s worked for—and very willing to take a bet, take just two months before the stock market crash of 1987 and the supremacy of the University of business risk if it was backed by has been a keen student of her industry ever since. She was a highly regarded North Carolina’s basketball team. analysis. It’s how I approach running a business. analyst at research firm Sanford C. Bernstein & Co. before moving into Q: You’ve worked for six chief Smanagement. Ms. Krawcheck later served as chief financial officer of , and executives in seven years. Q: Sandy Weill of Citigroup? also headed its Smith Barney brokerage and wealth management division. A: I know. [Melodramatically:] A: With Sandy, you had to carry Now she’s tackling one of the toughest jobs around: integrating Manhattan-based Oh, my God. your very thick book around with you for when he’d ask for the Merrill Lynch into Charlotte, N.C.-based Bank of America. Q: So tell us: What did you learn See BofA AND BROKERS on Page 15

business to stop the bleeding. Naturally,Congress wants to prevent such Who will call shots on mutual funds? a disaster from occurring again. Its proposal: Subject all financial institutions—including lion in spare cash. yanked $250 billion out of money market mutual funds—that could pose a risk to the Some are so big, they’re Manhattan-based Reserve had to write funds everywhere, according to the Federal financial system to regulation by the Federal seen as risks to financial off the value of hundreds of Reserve Board. And because Reserve. Although lawmakers had the Re- system. Fed may step in millions of dollars in suddenly money market funds are big buy- serve Primary Fund debacle in mind when worthless Lehman Brothers debt $3.3T ers of short-term corporate debt, they drafted the legislation,the language is so it held, in the process “breaking TOTAL money the $1.7 trillion market for com- broad that big mutual funds of all kinds, such BY AARON ELSTEIN the buck”and exposing customers market fund assets mercial paper soon shut down. as the $200 billion Pimco Total Return Fund, to losses in a money market fund All of a sudden, companies could also be deemed large enough to be reg- of the many, many bleak moments during pitched as the ultimate in safe, in the U.S. around the country couldn’t pay ulated by the Fed. the September 2008 financial crisis, the conservative investing. Source: Crane Data employees or suppliers because a The idea, approved by the House of Rep- darkest arguably was the collapse of the Re- But that was just the begin- single mutual fund had failed. resentatives last December as part of its mas- serve Primary Fund, a hugely popular mu- ning.As word of the Reserve Primary Fund’s Taxpayers were forced to step in and guaran- sive financial reform bill, angers the mutual tual fund where savers had parked $63 bil- stunning failure spread, panicked investors tee the entire $3.3 trillion money market See MUTUAL FUNDS on Page 14

February 1, 2010 | Crain’s New York Business | 13 20100201-NEWS--0014-NAT-CCI-CN_-- 1/28/2010 5:34 PM Page 1

REPORT FINANCE

power and placing it in the hands of a single new agency. Who will call the shots on mutual funds? In addition,the SEC is weighing new rules for the fund industry, in- cluding the possibility that money Continued from Page 13 billion J.P. Morgan Prime Money and Labor Committee has intro- lion in 2008. Ms. Schapiro also said market fund shares be allowed to fund industry,which for decades has Market Fund, and BlackRock, the duced legislation that would require the commission would consider fluctuate, rather than be pegged at been regulated—rather gently, for world’s largest money manager. It 401(k) plans to disclose their fees in ways to make it easier for investors $1 per share. the most part—by the Securities and has some $3 trillion under manage- plain English, grant the Labor De- to figure out how much they’re pay- This idea, along with the con- Exchange Commission. The indus- ment, including assets in such mu- partment authority to enforce fee ing in commissions to funds and the cept of regulating money market try’s big scandal earlier last decade, tual funds as the $56 billion Black- disclosures and require the plans to brokers who sell them. funds like banks, comes from Oba- in which several large funds let some Rock Liquidity TempFund. offer at least one low-cost index fund ma administration adviser and for- customers profit at the expense of J.P.Morgan did not respond to a among their investment offerings. Keeping costs down mer Federal Reserve Chairman others by trading shares at stale request for comment. BlackRock consumer groups have been seek- Paul Volcker.He led a committee of prices, was uncovered by the New Vice Chairman Barbara Novick ing precisely these reforms for 30 leading banking officials that York state attorney general’s office. says her firm is comfortable with the Regulate money years.The ICI has opposed many of last year argued that money market idea of being supervised by the Fed them, arguing, for example, that funds should be regulated like Not enough experience since it’s already watched by a host market funds charging customers directly for banks, which don’t offer savers re- “we strongly object to granting of regulators globally. “We’re more marketing and distribution instead turns as high as the funds do,in part the Fed sole authority to impose … focused on what the structural like banks, says of embedding fees in the funds because they have to pay for deposit a fundamentally inappropriate con- changes will be, rather than who would result in higher taxes and insurance and hold reserves against struct for mutual funds,” the fund would oversee them,” she says. former Fed chief other costs. deposits. industry’s trade group, the Invest- Critics find the fund industry’s “Everybody in financial services With the fund industry facing ment Company Institute, recently aggressive stance baffling in light of Paul Volcker is for regulatory reform, so long as it unprecedented regulatory pressure argued in a letter to congressional the problems exposed by Reserve’s doesn’t touch them,” says Barbara on multiple fronts, the best strategy leaders. collapse. Roper, director of investor protec- may be simply to play for time and An ICI official says the trade “ICI’s position makes it seem like tion at the Consumer Federation of hope the memories fade of the Re- group objects to being regulated by it doesn’t know what systemic risk America. “But everyone was part of serve Primary Fund’s collapse, says the Federal Reserve because it lacks is,”says Mercer Bullard,president of Even the somnolent SEC is the problem, so everybody has to be Peter Crane, president of Crane experience supervising mutual advocacy group Fund Democracy showing signs of awakening. In a part of the solution.” Data, a firm that tracks the money funds. Maybe so. Yet many major and a former SEC official. “Given speech last December, Chairman For the fund industry, the focus market industry. banks—which the Fed has a long what happened at Reserve, it’s clear Mary Schapiro said she would ex- has shifted to the Senate, which is “The further we get from a history of regulating—have owned that money market funds can pose a amine the fees that some 70% of working on its own sweeping finan- money market fund breaking the mutual fund outfits for decades. risk to the system.” mutual funds charge customers to cial reform bill. While the House buck,” Mr. Crane says, “the less ur- Among the companies with the There may be even more changes cover such noninvestment costs as bill would expand the Fed’s author- gency members of Congress and most at stake in New York are J.P. coming to the $12 trillion mutual marketing and distribution. These ity, the Senate currently envisions regulators feel they need to do Morgan Chase, manager of the $94 fund industry.The House Education 12b-1 fees cost fund holders $13 bil- stripping the Fed of its regulatory something.” 

14 | Crain’s New York Business | February 1, 2010 20100201-NEWS--0015-NAT-CCI-CN_-- 1/28/2010 5:34 PM Page 1

REPORT FINANCE

some contrarian bets in the heat of the battle that I believe firmly are SIX BOSSES IN SEVEN YEARS! “I KNOW. OH, MY GOD.” going to pay off very well for shareholders and the industry. Q&A Q: , the new CEO of BofA? A: The right guy for his role. He understands [BofA’s] different BofA and businesses. Q: Tell me how you landed your Lew Sanders Sandy Weill Ken Lewis Brian Moynihan current position after leaving the post Sanford C. Bernstein Citigroup Citigroup Citigroup Bank of America Bank of America brokers of Citi’s head of wealth management in 2008. Continued from Page 13 A: The connection to the job was respectful of the culture and A: We have to simplify the the right way to do business. number that was 16 lines down on made through Sandy Weill. Anne organization. complexity that we impose on Page 43. His way of managing was Finucane [BofA’s head of clients. As an industry, we speak in Q: We figured it would be that if you know your details, you marketing] called Sandy, asking, Q: The markets have rallied since our own secret language, saying interesting to know what the head of know your business. “What’s she doing, is she about to the financial crisis, but the data show things like, “Risk is standard Merrill Lynch is bullish and bearish take a job, what’s she thinking?” that individual investors are still deviation.” That’s gobbledygook. on. Manhattan residential real estate? Q: Charles Prince of Citi? Sandy called me on a Friday in July wary of investing in stock mutual What is risk to clients? It’s, “Oh, A: In the short term, you’ve got A: Working with Chuck, you do when I was about to go on a run. funds. Do you sense a lasting change my God, I’m not going to have to be bearish, and in the longer learn that extraordinary hard He told me how much he thinks of in investor behavior? enough money.” term, always bullish. work—he would literally e-mail this franchise and the potential of A: Is it different this time? It may his management team at 3 a.m.— the organization and suggested I be. We’ve had two significant Q: Do you support the proposed Q: Morgan Stanley? and the best of intentions speak to them. He just called me downturns [the dot-com bubble change in the law that would require A: Neutral. sometimes don’t work out. last week, asked how it’s going. and the 2008 crash], a decade of stockbrokers to act as fiduciaries to very poor stock returns—worse their clients? Q: Citigroup? Q: Vikram Pandit of Citi? Q: Mergers between banks and than zero—and what we see is A: To act in a client’s best A: Neutral. A: Pass. brokers have a lousy track record. Why clients are more risk-averse now interests, which is what the should BofA/Merrill be an exception? than they have been historically. fiduciary standard means—that is Q: Andrew Cuomo? Q: Ken Lewis of Bank of America? A: We are taking a fundamentally What is most notable is that not a bad thing to do. From a A: Why don’t you send these to A: I worked for Ken for two different approach. The day of the younger clients are the most risk- business and common-sense me by e-mail and we’ll think of months. I think the lesson learned quota—particularly of pushing the averse of any of them. perspective, not only is it the right quips for you? from Ken is, I have CEO repellent. in-house product—is over. Really way to do business, but if it’s a step [Laughs.] I think history is going over. Internally, we’re looking to Q: What sorts of changes would you toward restoring investor Q: North Carolina Tar Heels? to be kind to Ken Lewis. He took grow Merrill in a way that’s very like to see in your business? confidence, then it is particularly A: Bullish! Bullish! Bullish! 

utives who failed to pull off integra- tions much like the one under way at Krawcheck drives Merrill’s thundering herd BofA and Merrill.If Ms.Krawcheck succeeds, she will be a highly valu- able commodity indeed—and cer- Continued from Page 1 of taking the job came up, but I told flare that Ms. Krawcheck has some tainly a candidate to be CEO some- with Crain’s, BofA Chief Financial her, ‘Everything that’s going to big restructuring project in mind where. Not surprisingly, she is mum Officer Joe Price uttered one of the come up, you’ve seen before,’ ” says or—worse—plans to cut financial on that prospect, but she makes it verboten words when he praised former Citigroup CEO Sandy Weill, advisers’ pay by putting them on clear that she doesn’t expect her cur- Merrill during a conference call who recommended Ms. Krawcheck salary and giving discretionary rent position to be her last one. with analysts. to former BofA chief Ken Lewis. bonuses,rather than awarding them “Nothing’s ever over,” she says. “Merrill Lynch,” he said, “con- “She’s very good as a strategist and based on a commission schedule. tinues to show momentum as fi- at getting people to buy into her vi- In a Dec. 17 memo to staff about Hopeful signs nancial advisers provide customers sion for a business. And she’s a good the appointment of BofA’s new there are signs that Ms. Kraw- with benefits and expanded product listener.” CEO, Brian Moynihan, Ms. Kraw- check’s efforts to stabilize Merrill are sweep through cross-selling.” She also knows a thing or two check included a postscript aimed at starting to work. The unit generat- A spokeswoman observes that about managing through turmoil. calming nerves. ed net income of $446 million in the Mr. Price was addressing industry Ms. Krawcheck is now working for “No, we are not selling [private fourth quarter, a bit higher than the analysts,not Merrill brokers.Yet the her sixth CEO in seven years (see SEIZING THE BULL banking division] U.S. Trust,” she year-earlier period’s $407 million. seeming disconnect illustrates the the Q&A that begins on Page 13). BY THE NUMBERS wrote.“No, we are not putting [bro- Ms.Krawcheck says that the wave of complexity of the task that lies before And she’s a survivor of Citigroup, kers] on salary and bonus; no, we’re broker defections that hurt results in Ms.Krawcheck,a former Wall Street where she ran wealth management, $1.5 billion not smashing U.S.Trust and Merrill 2009 has ended and that the sales analyst,brokerage chief executive and the one division that remained prof- Total profits in 2009 Lynch’s private banking group to- force is starting to grow again. Out- Citigroup CFO who joined BofA in itable as the bank sank under bil- $1.3 trillion gether; no, we’re not converting our flows of client assets continue—a August as president for global wealth lions of dollars in mortgage losses. Client brokerage assets wealth management branches into worrisome sign—but the drop of and investment management. She ATMs.” about $5 billion last quarter was just has to keep BofA leadership in Managing the rumor mill 15,000 Indeed, the changes Ms. Kraw- one-sixth the average pace during Charlotte, N.C., from excessively since joining BofA,Ms.Krawcheck Financial advisers check seems to have in mind for each of the previous three quarters. meddling with its $50 billion acqui- has devoted much of her time to try- $817,000 Merrill sound modest so far. In fact, Ms. Krawcheck’s wealth sition, while winning over Merrill’s ing to persuade Merrill brokers that Revenue per adviser in 2009 She’s trying to get Merrill and management division has become army of 15,000 brokers, who man- under her watch, the firm will be the U.S. Trust to work together more one of the best-performing busi- age $1.3 trillion in client assets. kind of place at which they want to $92.7 billion closely since, as Merrill clients age, nesses within BofA, which is un- It’s a delicate task.The “thunder- work.She freely lavishes praise on the Net client outflows in 2009* they could benefit from the estate- profitable due to big losses in mort- ing herd” of brokers shrank by more Merrill franchise, which remained *Total for Merrill Lynch and Bank of America’s global planning services in which U.S.Trust gages, credit cards and other loans. wealth management division than 1,000 last year, and customers profitable even as its substantial in- Sources: Bank of America, Merrill Lynch specializes.She hopes her sales force If the bank were to need to sell as- yanked a breathtaking $93 billion in vestment banking division generat- will alert customers to BofA’s mon- sets to raise more capital, the Mer- assets out of BofA’s wealth manage- ed tens of billions in losses in 2008, ey market accounts and other sav- rill franchise would undoubtedly ment business, of which Merrill is forcing the shotgun marriage with and spent $20 million on a market- ings vehicles that could be of inter- fetch a very high price. now the key component. Merrill’s BofA at the end of that year. She ex- ing campaign in the fourth quarter est, though she insists that Merrill In the meantime, Ms. Kraw- revenues from administering ac- tols the firm’s culture and swears that to remind customers that “the bull is brokers are under no pressure to sell check is setting out to grow what counts, a key source of profits, being owned by BofA won’t turn the back.” And there are no BofA signs BofA-branded products. She has was once the nation’s leading inde- dropped by 27%,or $1.1 billion,dur- brokers into glorified tellers. in the lobby at Merrill’s longtime also revived Merrill’s broker training pendent brokerage firm in a way ing the first nine months of last year. Ms. Krawcheck’s words are headquarters in the World Finan- program and has launched a pilot that’s “very respectful of the culture Ms. Krawcheck’s fans—and she backed up with deeds. In support of cial Center. program to get BofA staffers to refer and organization.” has many in finance’s highest reach- Merrill’s heritage,she relaunched the Such moves have been welcomed customer leads to Merrill advisers. How to do that? es—think she can stop the bleeding. famous bull logo, which had disap- by the rank and file, but people re- Of course, the annals of Wall “Rule No. 1,” she answers: “Try “She was nervous when the idea peared after the merger was struck, main on edge. Periodically, rumors Street are replete with tales of exec- not to do stupid things.” 

February 1, 2010 | Crain’s New York Business | 15 20100201-NEWS--0016-NAT-CCI-CN_-- 1/28/2010 7:37 PM Page 1

REPORT FINANCE New York’s Largest Money Managers Ranked by total assets managed worldwide in 2009 Asset mix "&!!"! "&  (% of each)  !!"!  Equity # #   Fixed &&    Cash  " &&   %    &!" "&"" &! &!  !!"&$Other  !  !  !  +!#*.#*     (*, "*"*'         ?C7BG      <2(B EEE 0:/19@=19 1=;          7F32  #3E.=@9#.  /A6   $B63@  ./'!-00%1!-!'%,%-1     (!'-&''       ?C7BG       %/@9D3 EEE 8>;=@5/< 1=; /AA3B;/ EEE 5A 1=;    7F32  #3E.=@9#.  /A6   (%&'!+ *(-) ' $B63@       !-',!/+       ?C7BG      %/@9D3 EEE 7<57@C23>/@70/A7> 1=;      7F32  #3E.=@9#.  /A6   *"+ $B63@   ++)!-#%%/-01%)-   (!'$$*&'        ?C7BG    (7FB6D3 EEE /::7/<1303@@=;/@95:=0/: 1=;       7F32  #3E.=@9#.  $B63@   '*%(,(*+ (*) )**.00%1!-!'%,%-1,%/)#!0-#     !*"+,"'% '*0     ?C7BG     < / "/27A=<D3 EEE <799=/; 1=;       7F32   #3E.=@9#. /A6    "$$(++,' &', ( $B63@   !6!/$00%1!-!'%,%-1    !*%+ **(%%         ?C7BG     '=19343::3@%:/H/ EEE :/H/@2<3B 1=;     7F32  #3E.=@9#. $B63@   1* *2*+ (     '#"!"&(0&   < 2 n/d< 2 < 2 < 2 (7FB6D3 EEE 27/; 1=;  < 2 #3E.=@9#.   "1-!( "''"% *(-) ""!"-,-% "  '+-*' (

%4 ./* !/%! 7<1:C23A #3E .=@9 7BG /<2 #/AA/C (C44=:9 /<2 ,3AB163AB3@ 1=C@=2C13 7BA :7ABA 0CB B63@3 7A <= 5C/@/:3B3 )= ?C/:74G 4=@ B67A :7AB ;=<3G ;/>:732 0G B63 47@;A < / #=B /D/7:/0:3 < 2 #=B 27A1:=A32 A =4 31   C<:3AA =B63@E7A3 <=B32 =@ /:: * ( 1:73B  <1:C23A /AA3BA =4 B63 4=::=E7<5 AC0A727/@73A :13/  " 2D7A=@A DG AA3B "/7B/: "/7B/: @=C> %@C237B/: =;>/3< B= 7B/: "/1 /G (673:2A "/27A=< />7B/: C<27<5 "/27A=< (?C/@3 7B/: %/@B<3@A #3E .=@9 !743  '3A3/@163<7A3(=CB6E==2"/7/:C;3/<2(3:3

They’re just your typical wide-eyed idealists who think they can change the world.

Only they’re actually doing it.

2009 Neighborhood Builders (L to R): Heather Gershen, Director of Housing Development, Fifth Avenue Committee; Michelle de la Uz, Executive Director, Fifth Avenue Committee; Jeff Barker, NYC President, Bank of America; Judith Zangwill, Executive Director, Sunnyside Community Services; Andrea Thomas, Associate Executive Director, Sunnyside Community Services.

New York City community leaders deserve more than just handshakes and homemade cookies for their tireless contributions. That’s why Bank of America created the Neighborhood Excellence Initiative®: to recognize and reward deserving leaders from local high schools, nonprofits and neighborhoods alike who’ve transformed their personal desire to improve lives into a viable ability to do so. Congratulations to this year’s award winners.

Neighborhood Builders® Student Leaders® Local Heroes

Fifth Avenue Committee Melisa Bardhi Gabriela Castro Brooklyn Queens Queens

Sunnyside Orla Kerr Dean Chavooshian Community Services Manhattan Manhattan Queens Julie Kim Jill Eisenhard Staten Island Brooklyn

Dimitri Rodriguez Marjorie Eliot Bronx Manhattan

Tammy Tran O’Neil Hutchinson Queens Bronx

To learn more or apply, visit bankofamerica.com/neighborhoodexcellence

© 2009 Bank of America Corporation. All rights reserved. Member FDIC. AR94703 nb05p18-19cl.qxp 1/29/10 12:40 PM Page 18

ADVISORY SERVICES PUBLIC & LEGAL NOTICES DOUBLE YOUR INVESTMENT ADVISORY BUSINESS IN YOUR OWN MIDTOWN OFFICE. Notice of Registration of M & C Name of Foreign LLC: Orchard Hill Notice of Qualification of LionHedge Saatchi Sport & Entertainment LLP. Management GP LLC. App. for Auth. AGD Fund, LLC, App. for Auth. filed What you want... Who we are... Ctf of Reg. filed with Secy. of State of filed NY Dept. of State: 11/19/09. Sec’y of State (SSNY) 11/18/09. NY (SSNY) on 1/7/2010. Office loca- Jurisd. and date of org.: DE 11/17/09. Office location: NY County. LLC org. KBK Wealth Management is a full-service • A great work location/environment tion: NY County. LLP formed in Cty off. loc.: NY Cty. Princ. bus. loc.: in DE 11/16/09. SSNY designated as independent firm. Our three partners each • Your own book and business Delaware (DE) on 12/17/09. SSNY 623 Fifth Ave., 20th Fl., NY, NY 10022. agent of LLC upon whom process have 25 years of professional experience. • Higher payout + profit-sharing designated as agent of LLC upon Sec. of State designated as agent of against it may be served. SSNY shall • Full support staff & services What we need... whom process against it may be foreign LLC upon whom process mail copy of process to 405 Park served. SSNY shall mail process to: against it may be served. The Sec. of Ave., Ste. 803, NY, NY 10022. DE • • Established book and track record Unlimited practice growth potential Davis & Gilbert LLP, 1740 Broadway, State shall mail copy of process to: office addr.: CSC, 2711 Centerville • Access to planning & tax services • New energy, ideas and vision NY, NY 10019. Address of LLP in DE: The LLC, 623 Fifth Ave., 20th Fl., NY, Rd., Wilmington, DE 19808. Cert. of • Top b/d platform + full product menu • Desire to profit from all that we know 160 Greentree Dr., Ste. 101, Dover, NY 10022. Addr. of foreign LLC in DE Form. on file: SSDE, Townsend DE 19904. Cft of Reg.. filed with DE is: National Corporate Research, Ltd., Bldg., Dover, DE 19901. Purpose: • Early equity ownership potential If what you want and what we need are • Secy. Of State, 401 Federal St., Ste. 615 S. DuPont Hwy., Dover, DE any lawful activities. Paid medical insurance benefits aligned, call Alan today at (212) 944-8501. 4, Dover, DE 19901. Purpose: 19901. Auth. officer in DE where Practice Law and any lawful activities. Cert. of Form. filed: DE Sec. of State, KBK Wealth Management/28 West 44th St/NY, NY 10036/KBKWealthManagement.com Notice of Formation of eBooleant Securities and Advisory Services offered through Commonwealth Financial Network, Member FINRA/SIPC, Townsend Bldg., Dover, DE 19901. Consulting, LLC. Arts. of Org. filed a Registered Investment Adviser. KBK Wealth Management, LLC and Commonwealth are unaffiliated entities. Notice of Formation of Assiusa, LLC, Purpose: any lawful activity. with NY Dept. of State on 12/30/09. Art. of Org. filed Sec’y of State Office location: NY County. Sec. of (SSNY) 12/7/09. Office location: NY Notice of Formation of SOFOS ASSET State designated as agent of LLC County. SSNY designated as agent MANAGEMENT, LLC, a domestic upon whom process against it may GLASS REPAIR of LLC upon whom process against LLC. Arts. of Org. filed with the SSNY be served and shall mail process to: it may be served. SSNY shall mail on 11/18/2009. Office location: NY c/o CT Corporation System, 111 8th copy of process to c/o Reinhardt County. SSNY has been designated Ave., NY, NY 10011, regd. agent LLP, 44 Wall St., 10th Fl., NY, NY as agent upon whom process against upon whom process may be served. 10005. Purpose: any lawful activities. the LLC may be served. SSNY shall Purpose: any lawful activity. VANDALIZED mail a copy of process to: George GLASS? NOTICE OF FORMATION OF Play Nikas, 145 E. 57th St. 8th Fl, NY, NY NOTICE OF FORMATION OF Rum & Me LLC. Article of Organization filed 10022. Purpose: Any Lawful Purpose. Blackbird LLC. Arts. of Org. filed with with the Secretary of State of NY Secy. of State of N.Y. (SSNY) on (SSNY) on 12/15/2009. Office loca- Notice of Formation of Underhill 10/15/09. Office location: New York tion NEW YORK County. SSNY has Holdings, LLC; Arts of Org., filed with County. SSNY designated as agent of been designated as agent upon NY Sec. of State (“SSNY”) LLC upon whom process against it whom process against it may be 02/02/2009. Office in New York may be served. SSNY shall mail Do Not served. The Post Office address to County; SSNY designated agent for process to: 406 W. 44th Street New which the SSNY shall mail a copy of service of process with copy mailed York, NY 10036. Purpose: any lawful Replace any process against the LLC served to Attn: Melissa Tomkiel, Esq., Pryor activity. upon him/her is C/O the LLC 11 Cashman LLP, 410 , West 42nd Street, 15th Floor, New 10th Floor, New York, NY 10022, All HAPPY TEETH NY LLC Articles of York, NY 10036. Purpose of LLC: to lawful business purposes. Org. filed NY Sec. of State (SSNY) engage in any lawful act or activity. 7/3/09. Office in NY Co. SSNY desig. Street address of Principal Business Notice of Formation of Melco Direct agent of LLC upon whom process location is: 11 West 42nd Street, LLC filed with Sec. of State NY may be served. SSNY shall mail copy Restore! 15th Floor, New York, NY 10036. (SSNY) on 11/20/09. Office Location: of process to 160 Riverside Blvd., NY County. SSNY designated as Apt. #6E, NY, NY 10069, which is Notice of Qualification of TradeForce agent of LLC upon whom process also the principal business location. Staffing Solutions of Colorado, LLC. against it may be served. SSNY shall Purpose: Any lawful purpose. Authority filed with NY Dept. of State mail process to: Melco Direct LLC, on 1/13/10. Office location: NY Attn: Jeff Meltzer, 70 W 36th St., Suite NOTICE OF FORMATION of ECE County. LLC formed in CO on 1000, NY, NY 10018. Purpose: Any Policy Works, LLC Art. of Org filed 3/19/08. NY Sec. of State designated lawful purpose. Sec’y of State (SSNY) 1/5/10. Office PUBLIC & LEGAL as agent of LLC upon whom process location: New York County. SSNY REAL ESTATE against it may be served and shall 40 WEST 69TH OWNERS LLC designated as agent of LLC upon NOTICES mail process to: c/o CT Corporation Articles of Org. filed NY Sec. of State whom process against it may be System, 111 8th Ave., NY, NY 10011, (SSNY) 11/25/09. Office in NY Co. served. SSNY shall mail copy of SSNY desig. agent of LLC upon NOTICE OF FORMATION of ALIOMI regd. agent upon whom process may process to c/o Hofheimer Gartlir & whom process may be served. COMMERCIAL LLC. Articles of Organization were be served. CO and principal busi- Gross LLP, 530 Fifth Avenue, New SSNY shall mail copy of process to filed with The Secretary of State of ness addr.: 15660 E. Hinsdale Dr., York, N.Y. 10036. Purpose: any law- Cowan, Liebowitz & Latman, PC, 70,000 sq. ft. Modern Industrial New York (SSNY) on 11/25/2009. Centennial, CO 80112. Arts. of Org. ful activities. 1133 6th Ave., NY, NY 10036-6799 Building/Central Islip Vicinity Office location: New York County. filed with CO Sec. of State, 1700 Attn: Peter Porcino. Purpose: Any $6.50 sq. ft. or possible sale, 3.05 acres, SSNY has been designated as agent Broadway, Ste. 200, Denver, CO Notice of Formation of RBP JOINT 5 loading docks, 2 drive-in doors, 80290. Purpose: any lawful activity. lawful purpose. VENTURE LLC. Arts. of Org. filed 5,000 sq. ft. office space, of the LLC upon whom process with Secy. of State of NY (SSNY) on Ceiling Height 16’ to 27’, Divisible, against it may be served. SSNY shall 4,200 Amps, Ample Parking, mail a copy of any process to the LLC Notice of Qualification of Little Lotta Notice of Formation of M Dance & 01/20/10. Office Location: NY 2 miles from Long Island Expressway at 353 West 56th Street, Apt. 9B, New Music, LLC. Authority filed with NY Fitness LLC. Articles of Organization County. Princ. office of LLC: 60 Call (516) 576-3165 York, NY 10019. Purpose: For any Dept. of State on 1/8/10. Office loca- filed with Secy. of State of NY (SSNY) , NY, NY 10023. lawful purpose. tion: NY County. Princ. bus. addr.: 85 on 12/17/09. Office location: NY SSNY designated as agent of LLC 5th Ave., 6th Fl., NY, NY 10003. LLC County. SSNY designated as agent upon whom process against it may Notice of Formation of G3 6NY LLC. formed in DE on 12/29/09. NY Sec. of LLC upon whom process against be served. SSNY shall mail process OFFICE SPACE Arts. of Org. filed with Secy. of State of State designated as agent of LLC it may be served. SSNY shall mail to c/o Corporation Service Co., 80 of NY (SSNY) on 11/23/09. Office upon whom process against it may process to the LLC, 350 West 57th State St., Albany, NY 12207. OFFICE location: NY County. Princ. office of be served and shall mail process to: Street, #16C, New York, NY 10019. Purpose: Any lawful activity. SUITES LLC: 166 Elizabeth St., NY, NY 10012. c/o CT Corporation System, 111 8th Purpose: any lawful act or activity. FOR RENT SSNY designated as agent of LLC Ave., NY, NY 10011, regd. agent Notice of Qualification of LEE EQUITY 50 West 17th Street, 80-100 sf, $600-$1200. upon whom process against it may upon whom process may be served. Work stations also available. Name of LLC: 170 East 83rd Street STRATEGIC PARTNERS FUND RX Shared conference room. be served. SSNY shall mail process DE addr. of LLC: 1209 Orange St., LLC. Art. of Org. filed Dept. of State AIV, L.P. Authority filed with Secy. of Great loft building, newly renovated space. to Chet H. Olsen, 1880 Century Park Wilmington, DE 19801. Arts. of Org. of NY on 12/11/2009. Off. Loc. in NY: State of NY (SSNY) on 12/03/09. Lynn Whiting at 212-896-8624 East, Ste. 618, Los Angeles, CA filed with DE Sec. of State, 401 NY Cty. Secy. of State designated as Office location: NY County. LP formed [email protected] 90067. Purpose: Any lawful activity. Federal St., Dover, DE 19901. agent of LLC upon whom process in Delaware (DE) on 08/07/08. Princ. Purpose: all lawful purposes. against it may be served. Sec. of office of LP: 650 Madison Ave., NY, State shall mail a copy of process to NY 10022. SSNY designated as agent Notice of Formation of limited liability princ. bus. loc.: c/o Marjorie E. of LP upon whom process against it company (LLC). Name: VINOS Nesbitt, 445 Park Ave., 10th Fl., NY, may be served. SSNY shall mail LIBRES LLC. Arts. Of Org. Filed with NY 10022. Purpose: ownership and process to the Partnership at the the Dept. of State of NY on operation of real estate. princ. office of the LP. The regd. agent November 16, 2009. Office loc.: New of the company upon whom and at York County. Secretary of State of Notice of Formation of Tejabe Realty which process against the company New York (SSNY) is designated as Holding, LLC. Articles of Organization can be served is Corporation Service agent of LLC upon whom process filed with Secy. of State of NY (SSNY) Co. (CSC), 80 State St., Albany, NY against it may be served. The princi- on 01/07/10. Office location: NY 12207-2543. Name and addr. of each pal business and address SSNY shall County. SSNY designated as agent of general partner are available from mail copy of process is to M.S. LLC upon whom process against it SSNY. DE addr. of LP: c/o CSC, 2711 Rapaport, Esq., 6th floor, 18 East may be served. SSNY shall mail Centerville Rd., Wilmington, DE 48th St. New York, New York 10017. process to the LLC, c/o Charles W. 19808. Arts. of Org. filed with DE Management of the LLC shall be by Weiss, Esq., 225 Old Country Road, Secy. of State, State of DE, Div. of one or more members. Purpose: To Melville, NY 11747. Purpose: any Corps., 401 Federal St., Dover, DE Let Crain's New York Business Help You Secure New Clients in 2010 engage in any lawful act or activity. lawful act or activity. 19901. Purpose: Any lawful activity.

18 | Crain’s New York Business | February 1, 2010 nb05p18-19cl.qxp 1/29/10 12:40 PM Page 19

PUBLIC & LEGAL NOTICES

NOTICE OF FORMATION OF Notice of Qualification of Hanover Notice of Qualification of MORVEN GP, Notice of Qualification of Alene BAYVILLE OTC LLC. Article of Acquisition II LLC. Authority filed LLC. Authority filed with Secy. of State Candles, LLC. Authority filed with NY Organization filed with the Secretary with Secy. of State of NY (SSNY) on of NY (SSNY) on 01/05/10. Office Dept. of State on 12/8/09. Office of State of NY (SSNY) on 12/22/09. Office location: NY County. location: NY County. LLC formed in location: NY County. LLC formed in 10/27/2009. Office location NEW LLC formed in Delaware (DE) on Delaware (DE) on 12/23/09. Princ. NH on 12/2/08. NY Sec. of State YORK County. SSNY has been des- 12/21/09. SSNY designated as agent office of LLC: Attn: Robert Heine, 2 designated as agent of LLC upon ignated as agent upon whom process of LLC upon whom process against Beekman Pl., #13A, NY, NY 10022. whom process against it may be against it may be served. The Post it may be served. SSNY shall mail SSNY designated as agent of LLC served and shall mail process to the Office address to which the SSNY process to the DE address of LLC: upon whom process against it may be NH and principal business address: shall mail a copy of any process Corporation Service Company, 2711 served. SSNY shall mail process to the 51 Scarborough Lane, Milford, NH against the LLC served upon him/her Centerville Rd., Wilmington, DE LLC at the addr. of its princ. office. DE 03055. Arts. of Org. filed with NH is C/O the LLC 145 EAST 17TH 19808. Arts. of Org. filed with DE addr. of LLC: c/o Corporation Service Sec. of State, 107 N. Main St., PO STREET RM A4. NEW YORK, NY Secy. of State, 401 Federal St., Ste. Co., 2711 Centerville Rd., Ste. 400, Box 4989, Concord, NH 03301. 10003. Purpose of LLC: to engage in 4, Dover, DE 19901. Purpose: any Wilmington, DE 19808. Arts. of Org. Purpose: any lawful activity. any lawful act or activity. Street lawful purpose. filed with Secy. of State of DE, 401 address of Principal Business loca- Federal St., Ste. 4, Dover, DE 19901. Notice of Formation of Elyse Paris tion is: 145 EAST 17TH STREET RM Notice of Formation of FIFTY WEST Purpose: Any lawful activity. Designs LLC. Arts. of Org. filed with A4. NEW YORK, NY 10003. MANAGEMENT LLC. Arts. of Org. filed NY Dept. of State on 12/15/09. Office with Secy. of State of NY (SSNY) on Notice of Formation of HHLP Duo location: NY County. Princ. bus. addr.: One Associates, LLC. Arts. of Org. Notice of Formation of HIS FIRST 12/30/09. Office location: NY County. 156 W. 56th St., NY, NY 10019. Sec. NOTICE OF FORMATION OF The Law filed with NY Dept. of State on KISS, LLC. Arts. of Org. filed with SSNY designated as agent of LLC of State designated as agent of LLC Offices of Michelle R. Tepper PLLC. 11/3/09. Office location: NY County. Secy. of State of NY (SSNY) on upon whom process against it may be upon whom process against it may Arts. of Org. filed with Secy. of State Princ. bus. addr.: 44 Hersha Dr., 12/04/09. Office location: NY served. SSNY shall mail process to: be served and shall mail process to: of N.Y. (SSNY) on 9/2/09. Office loca- Harrisburg, PA 17102. Sec. of State County. Princ. office of LLC: 11 40 W. 57th St., 23rd Fl., NY, NY 10019. c/o Windels Marx Lane & Mittendorf, tion: New York County. SSNY desig- designated as agent of LLC upon Stanton St., #1D, NY, NY 10002. Purpose: any lawful activity. LLP, 156 W. 56th St., NY, NY 10019, nated as agent of LLC upon whom whom process against it may be SSNY designated as agent of LLC Attn: Bruce Bronster, Esq. Purpose: process against it may be served. served and shall mail process to: c/o upon whom process against it may Name of LLC: SILK ACUPUNCTURE any lawful activity. SSNY shall mail process to: 817 CT Corporation System, 111 8th be served. SSNY shall mail process LLC. Art. of Org. filed Dept. of State Broadway, 5th Floor, New York, NY Ave., NY, NY 10011, regd. agt. upon to the LLC at the addr. of its princ. of NY on 8/14/09. Off. Loc. in NY: NY 108 NORWOOD LLC a domestic 10003. Purpose: any lawful activity. whom process may be served. office. Purpose: Any lawful activity. Cty. Secy. of State designated as Limited Liability Company (LLC) filed agent of LLC upon whom process Purpose: any lawful activity. with the Sec of State of NY on JULGIL COCON LLC, Articles of org. 10/27/09. NY Office location: New filed N.Y. Sec. of State (SSNY) 14th against it may be served. Sec. of State shall mail a copy of process to: KAROON.COM LLC a domestic York County. SSNY is designated as day of October 2009. Office in New Limited Liability Company (LLC) filed agent upon whom process against York Co. at 1 Maiden Lane, 5th floor, 47 West 13th St., NY, NY 10011. Purpose: acupuncture. with the Sec of State of NY on the LLC may be served. SSNY shall New York, New York 10038. SSNY 12/22/09. NY Office location: New mail a copy of any process against desig. agt. upon whom process may York County. SSNY is designated as the LLC served upon him/her to The be served. SSNY shall mail copy of Notice of Formation of MAHLER LLC. agent upon whom process against Arts. of Org. filed with Secy. of State of LLC, 400 W. 14th St., 3rd Fl., NY, NY process to 1 Maiden Lane, 5th floor, the LLC may be served. SSNY shall 10014. General Purposes. New York, New York 10038. Reg. Agt. NY (SSNY) on 12/07/09. Office location: mail a copy of any process against upon whom process may be served: NY County. Princ. office of LLC: 301 the LLC served upon him/her to The Spiegel & Utrera, P.A., P.C. 1 Maiden W. 57th St., #25G, NY, NY 10019. LLC, 603 W. 115th St., Ste. 342, NY, Lane, NYC 10038. 1-800-576-1100. SSNY designated as agent of LLC upon NY 10025. General Purposes. Purpose : any lawful purpose. whom process against it may be served. SSNY shall mail process to Matthew Notice of Formation of FOREMOST S. Seminara, Esq., Gibney, Anthony & Notice of Registration of JUVELIER & CONSTRUCTION LLC. Arts. of Org. Flaherty, LLP, 665 Fifth Ave., NY, NY O’SULLIVAN, LLP. Certificate filed filed with Secy. of State of NY (SSNY) Notice of Formation of G&A 10022. Purpose: Any lawful activity. Management Associates, LLC. Arts. with Secy. of State of NY (SSNY) on on 12/16/09. Office location: NY County. of Org. filed with Secy. of State of NY 6/23/09. Office location: NY County. SSNY designated as agent of LLC (SSNY) on 3/16/09. Office location: SSNY designated as agent of LLP upon whom process against it may NY County. SSNY designated as upon whom process against it may be served. SSNY shall mail process agent of LLC upon whom process be served. SSNY shall mail process to: 40 W. 57th St., 23rd Fl., NY, NY 10019. Purpose: any lawful activity. against it may be served. SSNY to: 800 Third Avenue, 11th Fl., NY, Notice of Formation of ROBERT J. shall mail process to: c/o Abigail H. NY 10022. Purpose: practice the SAFERSTEIN PRODUCTIONS LLC, Hess Interiors, Inc., 308 E. 79th St., profession of law. Notice of Formation of ANCONIA PARTNERS LLC. Arts. of Org. filed a domestic LLC. Arts. of Org. filed Ste. 1B, NY, NY 10075, Att: George with the SSNY on 10/22/2009. Office Constant. Purpose: any lawful activity. with Secy. of State of NY (SSNY) on NOTICE OF FORMATION OF Lil Foodie 12/11/09. Office location: NY County. location: NY County. SSNY has been LLC. Arts. of Org. filed with Secy. of SSNY designated as agent of LLC designated as agent upon whom Notice of Qualification of Lago State of N.Y. (SSNY) on 11/24/09. Notice of Formation of LARDON 1350, upon whom process against it may process against the LLC may be served. Capital Management LLC, App. for Office location: New York County. LLC. Arts. of Org. filed with Secy. of be served. SSNY shall mail process SSNY shall mail a copy of process Auth. filed Sec’y of State (SSNY) SSNY designated as agent of LLC State of NY (SSNY) on 10/31/2002. to the LLC, Attn: Corporation Service to: 160 W. 118th St. #5B, NY, NY 12/2/09. Office location: NY County. upon whom process against it may be Office location: NY County. SSNY Co., 80 State St., Albany, NY 12207- 10026. Purpose: Any Lawful Purpose. LLC org. in DE 11/30/09. SSNY served. SSNY shall mail process to: designated as agent of LLC upon 2543, regd. agent upon whom and at designated as agent of LLC upon 80 John Street, #3G New York, NY whom process against it may be which process may be served. Notice of Formation of limited liability whom process against it may be 10038. Purpose: any lawful activity. served. SSNY shall mail process to: Purpose: Any lawful activity. company (LLC). Name: VINOS LIBRES served. SSNY shall mail copy of The LLC, 545 Fifth Ave., NY, NY WINE MERCHANTS, LLC. Arts. of process to Attn: Eric Fishman, 535 Notice of Formation of CLINTON 10017. Purpose: any lawful purpose. Org. Filed with Dept. of State of NY Madison Ave., 30th Fl., NY, NY HOUSING PRESERVATION DEVEL- on November 19, 2009. Office loc.: 10022. DE office addr.: CSC, 2711 OPER, LLC. Arts. of Org. filed with Notice of formation of REDLICH & New York County. Secretary of State Centerville Rd., Wilmington, DE Secy. of State of NY (SSNY) on COMPANY, LLC a domestic Limited of New York (SSNY) is designated as 19808. Cert. of Form. on file: SSDE, 12/03/09. Office location: NY County. Liability Company (LLC). Articles of agent of LLC upon whom process Townsend Bldg., Dover, DE 19901. Princ. office of LLC: 60 Columbus Organization filed with the Secretary against it may be served. The princi- Purpose: any lawful activities. Circle, NY, NY 10023. SSNY desig- of State on January 30, 2009, NY ple business and address SSNY shall nated as agent of LLC upon whom Office Location: New York County. mail copy of process is to M.S. Notice of Qualification of OAKTREE process against it may be served. Secretary of State is designated as Rapaport, Esp., 6th floor, 18 East PPIP FUND, L.P. Authority filed with SSNY shall mail process to c/o agent upon whom process against 48th St., New York, New York 10017. Secy. of State of NY (SSNY) on Corporation Service Co., 80 State the LLC may be served. Secretary of Management of LLC shall be by one 12/16/09. Office location: NY County. St., Albany, NY 12207. Purpose: Any State shall mail a copy of any or more members. Purpose: To LP formed in Delaware (DE) on lawful activity. process against the LLC served upon engage in any lawful act or activities. 07/17/09. Princ. office of LP: him/her to: 16 West 16th Street, Oaktree/Arctic Slope PPIP Fund GP, Notice of Qualification of CF Inver Apartment 14JN, New York, New L.P., c/o Oaktree Capital Mgmt. L.P., Grove III RE Holdco LLC. Authority York 10011. Purpose: To engage in 333 S. Grand Ave., 28th Fl., Los filed with NY Dept. of State on any lawful act or activity. Angeles, CA 90071. SSNY designated 12/11/09. Office location: NY County. as agent of LP upon whom process LLC formed in MI on 12/4/08. NY NOTICE OF FORMATION OF LIMIT- against it may be served. SSNY shall Sec. of State designated as agent of ED LIABILITY COMPANY. NAME: mail process to Corporation Service LLC upon whom process against it 135 WAVERLY REALTY LLC. Articles Co., 80 State St., Albany, NY 12207- may be served and shall mail of Organization were filed with the 2543, regd. agent upon whom and at process to: c/o CT Corporation Secretary of State of New York which process may be served. Name System, 111 8th Ave., NY, NY 10011, (SSNY) on 07/27/06. Office location: and addr. of each general partner are regd. agent upon whom process may New York County. SSNY has been available from SSNY. DE addr. of LP: be served. MI and principal business designated as agent of the LLC upon 2711 Centerville Rd., Ste. 400, addr.: 27777 Inkster Rd., Farmington whom process against it may be Wilmington, New Castle Cnty., DE Hills, MI 48334. Arts. of Org. filed served. SSNY shall mail a copy of 19808. Arts. of Org. filed with Secy. of with MI Dept. of Energy, Labor & process to the LLC, 135 Waverly State of DE, John G. Townsend Bldg., Economic Growth, 2501 Wood Lake Place a/k/a 385 6th Avenue, New 401 Federal St., Ste. 4, Dover, DE Circle, Okemos, MI 48864. Purpose: York, New York 10014. Purpose: For 19901. Purpose: Any lawful activity. all lawful purposes. any lawful purpose.

February 1, 2010 | Crain’s New York Business | 19 20100201-NEWS--0020-NAT-CCI-CN_-- 1/29/2010 8:19 PM Page 1

Exec pay gets a boost on the sly Dying indie hospitals

Continued from Page 1 Continued from Page 1 the hospital’s chief operating officer, scant information about the prac- CALL IT DEEP-POCKETS CHANGE SUNY Downstate Medical Center. noted in July.“It really needs a part- tice, but a review by Crain’s shows “These are going to be difficult years Most of New York’s highest-paid CEOs also collected tidy dividends on their vested and ner.” that 13 of the 15 best-paid CEOs in unvested stock awards—additional income that’s almost never directly reported in com- for hospitals, and the ones that will Ironically, St. Vincent’s attempt New York received them in 2008, pany filings. Here are some of last year’s top-paid chief executives, and Crain’s esti- suffer the most are the stand-alone at a partnership back in 2000 left it the most recent year for which data mates of their dividend income in 2009: ones without the resources of a large with a crushing debt burden. That are available. system.” failed merger with the Catholic The sums can really add up. Al- CHIEF EXECUTIVE COMPANY DIVIDENDS The factor fueling the consolida- Medical Centers of Brooklyn and lianceBernstein Chief Executive Peter S. Kraus AllianceBernstein Holding $3.9 million tion is the same in health care as in Queens and the Sisters of Charity Peter Kraus, for example, pocketed many other industries: the quest for Healthcare in Staten Island resulted Peter Georgiopoulos $3.5 million $3.9 million in dividends for General Maritime Corp. greater efficiency,purchasing power in hospital closures, $700 million in 2009—14 times his base salary—on Louis C. Camilleri Philip Morris International $1.8 million and a competitive edge. For hospi- debt, the exodus of doctors and a a restricted share grant that doesn’t Brian Duperreault Marsh & McLennan Cos. $329,000 tals, the big payoff from having costly bankruptcy. become entirely his until it fully greater scale is more negotiating Henry Amoroso, St. Vincent’s vests at the end of 2013. Goldman Kenneth J. Chenault American Express Co. $308,000 clout with suppliers,labor and,most chief executive, sees another reason Sachs CEO Lloyd Blankfein was Lloyd C. Blankfein Goldman Sachs Group Inc. $191,000 important, insurers. Bigger hospital for his hospital’s predicament. eligible to receive around $190,000 systems also have an edge in luring in dividends last year on his restrict- J.P. Morgan Chase & Co. $159,000 revenue-generating superstar phy- Multiple blows ed shares. J.P.Morgan Chase CEO Laurence D. Fink BlackRock Inc. $150,000 sicians, drawn not just by the com- “eight separate budget cuts from Jamie Dimon stood to collect as Ralph Lauren Polo Ralph Lauren Corp. $120,000 pensation but by the latest medical New York state over the past two much as $159,000. machines that only megasystems years and the worst recession in AllianceBernstein,Goldman and John R. Strangfeld Prudential Financial Inc. $99,000 can afford. many decades have combined to J.P. Morgan declined to comment John B. Hess Hess Corp. $84,000 Adding to those long-range present St. Vincent’s with some se- on last year’s pay. problems are a host of newer ones rious financial challenges,” he said K. Rupert Murdoch News Corp. $37,000 thrown up by the recession. St.Vin- in a statement last week. Payouts stand to rise Vikram Pandit Citigroup Inc. $11,000 cent’s and Lenox Hill are scrutiniz- Lenox Hill, meanwhile, tried a these little-known dividend Source: Crain’s analysis of company filings ing their bottom lines at a time when different approach. For years, it payouts will become much larger more New Yorkers are uninsured thrived as a low-cost hospital that this year as banks require more em- and unable to pay stuck to profitable ployees to take most or even all of give employees a greater sense of separate account, and it tightened their medical bills. services in orthope- their bonuses in restricted stock. “value” from their stock grants, vesting requirements so that the Meanwhile, the dics, maternity and The payouts also stand to rise this many of which are worth substan- awards pay out only after the execu- state is slashing its cardiovascular care. year as healthier banks begin to raise tially less than a few years ago. The tive meets performance targets nec- health care spend- But in recent years, the dividends they slashed last year dividends also mean the executives essary to qualify for the underlying ing, and the federal it began losing doc- to conserve cash. reap some benefit while they wait to stock.A spokeswoman said Morgan government is re- tors and market Mr. Dimon, for one, could see be handed their restricted stock, Stanley changed its policies only be- ducing share to larger ri- the annual payout on the restricted which typically takes around three cause of a 2008 accounting rule payments. vals. While it is shares he already holds jump to $1.2 years to vest. Some impatient banks change. According to a meeting its finan- million—$200,000 more than his reportedly have shortened waiting report released Fri- cial obligations and 2008 salary—if J.P.Morgan restores periods to mere months. Goldman’s math day by ratings bond covenants, it its dividend to 2008 levels. “Companies are constantly some compensation experts ex- agency Moody’s In- started a search for a To some critics, the payouts struggling to convince employees pect this issue to get more attention vestors Service, the partner last year. It smack of a sneaky way to increase pay. that compensation in forms other from shareholders and regulators as outlook is down- is now negotiating “People at places like Goldman than cash has real value,”says Robert the dividend payouts grow. right grim.Over the with North Shore- Sachs are going to reap windfalls in Sedgwick, an attorney who special- Consider Goldman’s Mr. Blank- next year or so, non- LIJ to become that newscom dividends from stocks they haven’t izes in executive compensation mat- fein. He could get up to $27 million profit hospitals “will ST. VINCENT’S: Part of a vanishing breed. system’s Manhattan earned yet,” says Tony Daley, an ters at law firm Morrison Cohen. worth of restricted shares as a bonus face one of the outlet. economist at the Communications Still, some companies have seen for 2009, based on the size of his toughest environ- “We’re a small, Workers of America. fit to cut back on the dividend pay- 2007 cash bonus and the fact that he ments in decades,” said Moody’s in stand-alone hospital that provides The union fought similar payouts outs. and other top Goldman officials are a statement. similar services to larger hospitals, at General Electric’s 2007 annual IBM stopped paying cash divi- receiving bonuses only in restricted yet we are unable to get adequate meeting after CEO Jeffrey Immelt dends on unvested restricted grants stock for last year. If so, his 2009 Mixed blessing rates from commercial insurers and was paid $1.3 million in dividends— in 2008. Pfizer ceased cash payouts stock grant would pay approximate- for st. vincent’s, relief may come are experiencing cuts from govern- equal to 40% of his salary—on shares on restricted stock several years ago ly $250,000 in annual dividends from accepting an offer from Con- ment sources,” says a Lenox Hill he didn’t own. It lost. and requires dividends to be rein- while Mr. Blankfein waits for the tinuum Health Partners to shut the spokeswoman. “It makes no sense to pay people vested in additional shares. prize to become truly his. hospital down and run the facility as In fact, such alliances are what dividends on shares they don’t own,” Just last month, Morgan Stanley A Goldman spokesman points an ambulatory care center, but only have created the industry’s reigning Mr. Daley says. “Shareholders tightened up its rules and no longer out that the firm’s 2009 bonus pool with financial support from the state powerhouses: New York-Presbyter- should be outraged.” awards regular cash dividends on was 20% smaller than 2007’s, and and St. Vincent’s creditors. ian Hospital, Continuum Health Compensation experts contend unvested restricted stock. The bank Mr. Blankfein’s restricted stock “St. Vincent’s realized it can’t be Partners and North Shore-LIJ. that dividends on unvested shares now accumulates the dividends in a bonus could reflect that.  a stand-alone entity,”Arthur Webb, Albany encouraged such merg- ers when it created the Berger com- mission,which sought to streamline the expensive health delivery system Newsday faces labor dispute, few sign-ups by closing underperforming hospi- tals. The panel, however, did not slate St. Vincent’s or Lenox Hill for Continued from Page 3 Cablevision’s moves also reflect Some analysts wonder the same be taken under the umbrella of a closure, though it did shutter St. audience will be part of the online ad the quirks of its mercurial leader- thing. company that is financially success- Vincent’s midtown hospital. sales team’s 2010 pitch. ship, Chief Executive James Dolan “How many people have signed ful, and you have to live on their “At the time, they were still in For total traffic, the site’s De- and his father, Charles Dolan, who up for Cablevision because it now terms.” bankruptcy and attempting to reor- cember number was down 44%. is chairman. Newsday no longer provides access to Newsday’s site?” The paper’s union says it under- ganize,” says one Berger commis- Analysts say that’s not necessarily a takes hundreds of thousands of dol- asks Colby Atwood,president of re- stands what conditions are like. sion participant. problem, since advertisers prefer a lars worth of advertising from Ca- search firm Borrell Associates. “I’m “The question is, to what degree do Now the best hope for survival focused audience. But they don’t see blevision archrival Verizon—a deci- thinking not many.” we have to make sacrifices?” asks for St.Vincent’s and Lenox Hill lies customer retention alone as a means sion that the paper’s staffers find Zachary Dowdy, vice president for in finding a merger partner that for growing revenue. especially galling as they’re asked for The way it is the editorial unit of Local 406. would finally allow them to com- pay cuts. but analysts also say that newspa- Cablevision executives argue mand better payment terms from Good strategy? Writers and reporters are also per employees have to get used to a that their aim is to keep the paper insurance companies. “you’ve got to find ways to wring skeptical of the pay wall, which they disruptive environment and worse sustainable. They also say that the “They don’t have star doctors, subscription money out of your au- feel has cut them off from a wider pay and working conditions. paper won’t be changing hands and they don’t have a strong man- dience, with sophisticated services readership and limited their influ- “This is what the 21st century is again any time soon. agement team for contract negotia- for your niche,” says Ken Doctor, a ence. They also wonder how man- like for newspapers,” says Paul “Newsday has a clear and unique tions,” says an insurance executive media analyst at research firm Out- agement can be sure that free access Levinson, a professor of media strategy,” says Mr. Smith. “[Cable- whose company has contracts with sell Inc. “I don’t know if they have to Newsday.com will lead to cus- studies at Fordham University. vision] is optimistic about the fu- both.“Is there leverage in being in a that strategy.” tomer loyalty. “The only way you can survive is to ture.”  large hospital network? Yes.” 

20 | Crain’s New York Business | February 1, 2010 20100201-NEWS--0021-NAT-CCI-CN_-- 1/29/2010 11:14 AM Page 1

51% of private U.S. companies believe that their revenues will rise this year BUSINESS LIVES Source: Grant Thornton International Ltd. HOT JOBS EXECUTIVE INBOX Anne Fisher PRESIDENT AND CEO ORGANIZATION Girls Inc. How to sell to JOB DESCRIPTION Provide GO FIGURE vision, strategic direction and EIGHT: Rikki Uncle Sam: a management Samuels gives private skating small biz primer MOST IMPORTANT TASKS Devel- lessons to female oping creative fundraising tactics, executives. THE FEDERAL RESERVE says we’re overseeing human resource poli- in a national recovery. So why cies, raising the nonprofit’s does it seem as if the only entity national profile with money to throw around is the CREDENTIALS NEEDED Proven federal government itself? Uncle record of strategic managing and Sam is spending $862 billion in fundraising stimulus funds, on top of the SALARY $190,000 to $210,000 $400 billion a year that already RECRUITER Phillips Oppenheim goes toward procurement of 23% DOWNSIDE The last CEO had a goods and services. By law, heavy travel schedule of that dough is earmarked for small businesses. UPSIDE Working for an organiza- Great, but how do you get a tion that teaches girls how to con- front negative societal messages piece of it? “I think most entrepreneurs Girls Inc. is a national nonprofit are intimidated by the idea of dedicated to inspiring all girls to dealing with Washington,” says be strong, smart and bold. The organization provides educational Lisa Dolan, founder and owner of programs for millions of American Securit (www.secur-it.com). Her girls in underserved areas. Flushing, Queens-based firm —EMILY LAERMER provides security guards and bodyguards to private industry and government agencies. About 70% of Securit’s $6 million in revenues comes EXECUTIVE MOVES from federal contracts. “Once get used to the procedures Amalgamated Bank: you , James T. Freel, 57, was it’s really not hard, because the named senior vice feds spell out for you exactly president and chief what they want,” Ms. Dolan says. real estate officer in The first step: Know your code the institutional asset under NAICS—the North American management and GOTHAM GIGS Industrial Classification System. custody division. He was most recently senior vice president You can look up the info for free in KeyBank’s asset recovery group. at www.naics.com. Then visit Converseon: Craig Daitch, 36, joined the www.fbo.gov, enter your code social media consultancy as senior vice and some other data, and you’ll president of activation. He was most The Rink Master get an idea of federal business recently senior vice president of creative opportunities in your field. solutions at Measure 2X. Next, register your business at Arkadium Inc.: Dan Hart, 44, joined the rikki samuels has been teaching skating at Rockefeller Center’s game developer as chief revenue officer. Ms. www.ccr.gov. The initials stand for He was most recently senior vice famed rink for 25 years—mostly giving private lessons to female execs, Central Contractor Registration. president and general manager at MTV Samuels who tend to be in their 40s.The 71-year-old begins each day at 7 a.m., “Most government agencies Digital. no matter what the weather.“Sometimes it starts to rain or snow, but search for contractors at CCR,” In Demand: Robert G. spends her says Ms. Dolan. “They enter what Benya, 50, was named we can’t be stopped,” she says. ¶ Freezing temperatures are nothing to they need by NAICS code, and president and chief executive at the afternoons Ms. Samuels, who started skating when she was 5 and spent her high then maybe add a phrase to their entertainment school years living away from her family home in Westchester, training search, like ‘small business.’ ” technology firm. He thawing at the rinks in Lake Placid. She ranked fifth in the country and For detailed advice, check was most recently out a free online tutorial from senior vice president out at almost made it to the Olympics. After a stint with the Ice Follies of American Express OPEN at www. of video product strategy at Time England, she began her teaching career while in college at the open.com/governmentcontracts. Warner Cable. museums “[Federal opportunities] are Arnold & Porter: Alan W. Lawrence, 44, University of Pennsylvania and never looked back. ¶ “I hated sitting joined the law firm as a partner. He was in a classroom, and I loved coaching skaters,” Ms. Samuels says. ¶ usually guaranteed five-year and contracts,” notes Ms. Dolan. most recently a partner at Cadwalader Now married to a retired professor—it’s the Wickersham & Taft. “Who in the private sector gives Weiser: Pamela O’Neill, 44, joined the Broadway second marriage for both—Ms. Samuels isn’t all skating all the time. you that?” accounting and consulting services She spends her afternoons thawing out at museums and Broadway firm as a principal. She was most shows DOES YOUR COMPANY DO BUSINESS recently a managing director at Alix shows. But she has turned her husband into a skating fan:Their with the federal government? Do you Partners. wedding took place on the ice at Rockefeller Center in 1993. have tips on doing so? Tell us at —maia blume —miriam kreinin souccar www.crainsnewyork.com/execinbox. buck ennis

February 1, 2010 | Crain’s New York Business | 21 20100201-NEWS--0022-NAT-CCI-CN_-- 1/28/2010 7:43 PM Page 1

RÉSUMÉ REVIEW How are they doing now? Is your job search all it could be? We ask the experts. Former mayor dishes dent thinks about their legacy, what They’re distressed about the on- NAME JAMES A. BENJAMIN they’re leaving behind. going war, about the nature of the SUMMARY on New York pols omissions in the comprehensive General manager with finance, operations, Who do you support for mayor in 2013? health insurance plan,and that there supply chain and information systems skills and his own mortality He’s not currently a candidate,but if are no jobs. PROFESSIONAL EXPERIENCE he runs,[Police Commissioner] Ray Kelly is my candidate. What should be done about Albany?  Sterling Publishing Co., Manhattan, 2006-2009 BY KIRA BINDRIM We should throw them all out. The Vice president, finance and operations How is Mr. Obama doing? good aren’t good enough, and the Developed a standardized profitability approach with outside partners, wo decades removed I’m disappointed. I still support bad are all evil. saving $3 million to $5 million in future losses from his 12 years in office, him, but I believe he sold us out to  Baker & Taylor Inc., Bridgewater, N.J., 1997-2005 former Mayor Ed Koch the prescription drug companies on Who should be the next governor? Senior vice president, operations spends his time now as a health care. I think the Democrats I have very warm feelings toward Developed, implemented growth strategy and long-term financial goals Tpartner at midtown law firm Bryan and the president are suffering be- , and I hope to be EDUCATION Cave. Mr. Koch, who just celebrat- cause the public is distressed: able to support him for re-election. ed his 85th birthday,took a few min- He’s getting better.  Fairleigh Dickinson University, MBA utes out of his day to discuss Ma-  Muhlenberg College, BA yor Michael You had breakfast with Mr. Spitzer a few Résumé appears in condensed form. Bloomberg’s months ago. Do you think he’ll go back EXPERT ADVICE third term, into politics? President Ba- He’ll be back. Everyone gets an op- Call a former colleague and, rather than ask for a job, ask for a reference. MOVERS & rack Obama’s portunity to come back;you just have This is a great approach to let your key contacts know you’re looking, and it’s SHAKERS reputation and to do a little penance. It’s too bad he also not as awkward as asking them if they’ve heard of any opportunities. former Gov. did what he did and caused his re- Connect with recruiters who specialize in placing professionals with your Ed ’s moval, because he’s brilliant and background. Make a list of all of the companies that you are interested in. If potential re- would have made a great governor. you’re using , be sure to follow those companies so you can stay up- Koch turn to poli- to-date on developments and opportunities. tics. How does it feel to be 85? —ware sykes, director of career services, TheLadders.com The strange thing is I know I’m in a What is Mr. Bloomberg’s biggest frail body,but I don’t feel old or frail. To contact this candidate or to be featured in “Résumé Review,” e-mail us challenge this term? Even though my footing is unsure at [email protected]. His legacy.This is his last term, and and I always look for a railing, in my  every mayor or governor or presi- newscom head,I don’t view myself that way.

We know. Three generations later, there’s still nothing better than a day at the office. Capital One® Business Banking. We know business. It’s not just a family business. The business is the family. The family is the business. There’s no separating the skill, dedication and relationships that sustain them both. We know – we’re Capital One Bank. And skill, dedication and relationships are why so many New York and New Jersey businesses work with us. With Capital One as one of the 10 largest banks in the country, we have an ever-growing list of hundreds of locations in the New York and New Jersey area and a team of banking professionals, passionate about their local markets. Professionals ready to consult with you on a variety of checking, savings and cash-management tools. Tools that’ll help keep your business growing for generations to come. Now that you know, contact Lisa Galante at [email protected] or visit www.capitalonebank.com.

Products and services offered by Capital One, N.A., Member FDIC. Capital One Bank is a trade name of Capital One, N.A., and does not refer to a separately insured institution. ©2010 Capital One. All rights reserved.

22 | Crain’s New York Business | February 1, 2010 20100201-NEWS--0023-NAT-CCI-CN_-- 1/29/2010 11:15 AM Page 1 chemex / INSATIABLE THURSDAY, FEBRUARY 11 CRITIC THE NEW YORK SOCIETY OF SECURITY flickr.com Gael Greene THE ANALYSTS will host a program on the evolution of equity trading from 6 p.m. to 8:30 p.m. at , 10th WEEK floor. Fees are $75 for members and $115 for nonmembers. Call Crab-happy spot (212) 541-4530 for more information. AHEAD SEMINARS WEDNESDAY, FEBRUARY 10 FEB. 8-14 Join JOHN CRANT OF SELFRECRUITER.COM out in Queens and the for a free lecture on preparing for an interview CONFERENCES and following up from 6 p.m. to 7:30 WHAT HE’S Imperial Palace offers TUESDAY, FEBRUARY 9 p.m. at 188 Madison Ave., lower level, Join the REAL ESTATE BOARD OF NEW room 018. For further details, call READING variety of seafood; YORK for its ninth annual residential (212) 372-9878 or e-mail management leadership breakfast from [email protected]. PAUL MASSEY, a founding partner prices can be steep 8:30 a.m. to 10 a.m. at the Roosevelt of Massey Knakal Realty Services, Hotel, 45 E. 45th St. The fee is $75, and CULTURAL EVENTS reads management books to e’re going to preregistration is required. For more MONDAY, FEBRUARY 8 polish his own skills and to share Flushing with information, call (212) 532-3100. Join the NEW YORK RANGERS FOR CASINO NIGHT with his brokers. He just finished friends to eat to benefit the Garden of Dreams NETWORKING RECEPTIONS Foundation.There will be a buffet dinner Don’t Be That Boss: How Great crab,” my friend TUESDAY, FEBRUARY 9 and live and silent auctions.The evening Communicators Get the Most out e-mailed. “Want steve richter NETWORKING FOR PROFESSIONALS AMBROSIAL: A crab egg custard will is sponsored by Oppenheimer Funds and of Their Employees and Their toW come?” hold a networking reception from 6:30 will run from 7 p.m. to 10 p.m. at Careers, by Mark Wiskup, and So Steven and I join George and p.m. to 8:30 p.m. at the Galway Hooker Gotham Hall, 1356 Broadway.Tickets found the examples of the best Jenifer Lang as the relentless GPS IMPERIAL PALACE Pub, 7 E. 36th St. Fees are $20 for range from $500 to $2,000 and can be ways to handle workplace members and $30 for nonmembers in purchased by calling (877) 674-4625 or leads us to Flushing and the highly 136-13 37th Ave., Flushing duties—such as giving employees (718) 939-3501 advance; $35 for all at the door. Call visiting newyorkrangers.com. touted Imperial Palace. appropriate warnings—insightful. The early birds in our party are (212) 227-6556 or e-mail adminnfp@ Pick SATURDAY, FEBRUARY 13 Another favorite was the already sipping wine and chopstick- networkingforprofessionals.com. COMMUNITY OPTIONS INC. of the autobiography of legendary ing peanuts as we’re led past the CUISINE Chinese PROGRAMS & WORKSHOPS will hold its Cupid’s Chase week aquarium—a must in any serious football TUESDAY, FEBRUARY 9 5-kilometer run in nine states coach Bo Schembechler, for its Cantonese restaurant, where “live” PRICE RANGE $8.50-$55 THE SMALL BUSINESS DEVELOPMENT at 24 locations. The New York City run straight talk about maintaining old- is the mantra. Minutes later, SERVING 11:30 a.m. to midnight CENTER at the NYC College of Technol- will begin at 10 a.m. in Riverside Park, at Michael Tong, proprietor of Shun ogy will hold a free workshop on classify- West 82nd Street. Participants can fashioned values and focusing on RESERVATIONS Lee and Shun Lee Palace, dressed For large groups ing workers as employees or independent purchase raffle tickets to win romantic the project at hand. like a diplomat,speaking Cantonese NOISE LEVEL Can get noisy contractors, from 6 p.m. to 8 p.m. at the weekends and Valentine’s Day flowers. On his vacations, Mr. Massey and escorting a friend in fur, cuts a Brooklyn Public Library’s Business The fee is $20; registration is required. enjoys delving into the classics. I can’t wait to return. Library, 280 Cadman Plaza West, To register, call (212) 227-9110 or Favorite authors include Charles swath through the crowd. “When I will definitely go back. conference room. Call (718) 797-0187 or e-mail brooke.reynolds @comop.org. you go to Flushing,you always bring Dickens and his contemporary I’ll let them simmer awhile. e-mail [email protected]. —maia blume wine,”he says.He prefers a Reisling. Anthony Trollope. NO HATS Never again. “You need the sweetness to compro- To view Crain’s full calendar listings, go to www.crainsnewyork.com/events —THERESA AGOVINO mise the spiciness of the food.” “So we’re here for crab,” Michael tells the waiter. The man stands by ters with pungent XO sauce. rapt, ears only for Tong. One by one, Alas, the flounder that gave its all we chime in our requests. Ignored. to be deep-fried with bones so crisp The waiter will only take orders from you can chew them is a rather Tong’s mouth. We must choose, scrawny creature with dried-out flesh Michael translates, between Dunge- that tastes like shredded paper. Our ness crab from Vancouver at $28 group is not impressed by minced each—we’ll need three or four—and shrimp cake under a crackling rec- a giant Alaskan crab, five pounds tangle of chicken skin. And by the served three ways for $300.It’s unan- time the pork soup with mustard imous: Our Alaskan heavyweight is greens and tofu is dished up, I’ve had brought out for one last photo op. too much deep-fried chicken and And then, quickly, runners deliv- everything else to more than taste. er clams in black bean sauce, and the Indeed,most of our group is look- prettiest baby bok choy I’ve ever seen, ing somewhat stunned. I suppose the greens neither overcooked nor so that’s why everyone but me and al dente they can’t be cut with a fork. Steven is neglecting one of the stellar Behind me, families gather at big stir-fries—corkscrews of squid rounds like ours. I want everything tossed with pickled mustard greens, they’re having, sure that we are two black beans and slivers of hot red degrees of separation from divining pepper—sweet,salty,chewy and hot. the Flushing code.Now the captured Warm green bean soup, not the Alaskan reappears as salt and pepper haricot vert we know, but a small crab, hacked into chunks and fried in green bean, is one of those Chinese When it comes to your business, it helps to have a the shell,its meat easy enough to pull desserts that remain inscrutable to co‑pilot̶a trusted pair of hands to keep your out with a cocktail fork or chopsticks. me. Canned lychee and pineapple business on course. It doesn’t look like $300,but the taste will have to do for innocents like us. is priceless. Tender, juicy, mostly not “I’ve learned one thing tonight,” At weʼve been at our clientsʼ sides for more overcooked. Michael sees me strug- George Lang announces: “Don’t gling with a claw and puts a prime come to Flushing in a tie. You will than 50 years. Our experienced advisors offer a wealth piece on my plate. I’m playing the get it messy.” of knowledge, insight and understanding in a wide range sweetness of the crab against garlicky Michael agrees as he calculates of specialized fields from real estate, bankruptcy and snow pea shoots. the bill—$61 each, credit cards ac- There is more crab tossed with cepted. “These days, the tie costs international taxation to family business, mergers and sticky rice and chopped scallion in a more than the shirt.” acquisitions, and business valuation. Their in‑depth casserole but,best of all,an ambrosial Should you truck out to Flush- analyses and value‑added services can help keep your fondue of crab egg custard ladled into ing? Yes,if,like me,you feel a need for business on course̶no matter what the weather. the crab’s shell. A Chinese scholar at adventure once in a while.And bring our table compares it to chawan- a friend who speaks Cantonese. Why fly solo? Put Marcum on your flight plan today. marcumllp.com marcumgroup.com mushi, the delicate Japanese custard. And I’m knocked out as I always am Copyright © 2010 by Gael Greene. by outsize four-bite Vancouver oys- Syndicated by www.insatiable-critic.com.

February 1, 2010 | Crain’s New York Business | 23 CN013470 1/22/10 4:37 PM Page 1

Houston,New York,,Cleveland I fly back and forth a lot on business Now Continental Airlines has joined Star Alliance I can use my miles to fly to Goa for a change. I’ve earned it.

Christine Reischl, Senior Vice President & General Manager, Industry Standard Servers, Hewlett Packard and Star Alliance Gold Status

staralliance.com