CNYB 05-07-07 A 1 5/4/2007 7:00 PM Page 1 TOP STORIES Portrait of NYC’s boom time Wall Street upstart —Greg David cashes in on boom on the red hot economy in options trading Page 13 PAGE 2 ® New Yorkers are stepping to the beat of Dancing With the Stars VOL. XXIII, NO. 19 WWW.NEWYORKBUSINESS.COM MAY 7-13, 2007 PRICE: $3.00 PAGE 3 Times Sq. details its growth, worries Murdoch’s about the future PAGE 3 global plan Under pressure, law firms offer corporate clients for WSJ contingency fees PAGE 9 421-a property tax Times, CNBC and fight heads to others could lose Albany; unpacking out to combined mayor’s 2030 plan Fox, Dow Jones THE INSIDER, PAGE 14 BY MATTHEW FLAMM BUSINESS LIVES last week, Rupert Murdoch, in a ap images familiar role as insurrectionist, up- RUPERT MURDOCH might bring in a JOINING THE PARTY set the already turbulent media compatible editor for The Wall Street Journal. landscape with his $5 billion offer for Dow Jones & Co. But associ- NEIL RUBLER of Vantage Properties ates and observers of the News media platform—including the has acquired several Corp. chairman say that last week planned Fox Business cable chan- thousand affordable was nothing compared with what’s nel—and take market share away housing units in the in store if he acquires the property. from rivals like CNBC, Reuters past 16 months. Campaign staffers They foresee a reinvigorated and the Financial Times. trade normal lives for a Dow Jones brand that will combine Furthermore, The Wall Street with News Corp.’s global assets to Journal would vie with The New chance at the White NEW POWER BROKERS House PAGE 39 create the foremost financial news York Times to shape the national and information provider. The agenda on issues of politics as well combined properties would offer as finance. marketers access to outlets around “The Journal will be a counter- AT DEADLINE Real estate’s the world and on every conceivable See MURDOCH on Page 8 TRANSPORTATION ALTERNATIVES on Friday launched what it calls the next generation biggest advocacy campaign in Bank openings hit its 34-year history to promote Mayor Michael Bloomberg’s Young dealmakers carve PlaNYC 2030.The first niche in clubby business, initiative of the group’s record rate in NYC campaign is to orchestrate an score big in hot market e-fax barrage against Rep. Investors seek profits “I have never seen the New Anthony Weiner, D-Queens, BY JULIE SATOW York City market this active in my who opposes congestion in niche markets, entire career,” says Ed Lutz, presi- pricing. dent and chief executive of Lutz neil rubler is no stodgy real estate developer. At the en- despite tough rules Advisors Inc.,who has been a bank REAL ESTATE INTERESTS WILL trance to his office, a large black painting with a Jimi Hen- consultant or regulator for nearly OPPOSE several provisions in drix quote greets visitors. On Tuesday evenings, the 37-year- 40 years. the city’s new building code, old president of Vantage Properties likes to bring in his yoga BY TOM FREDRICKSON Many of the new banks hope to which is expected to go before and Pilates instructor to lead classes for him and his staff. fill narrow niches missed by com- the City Council for approval “Yoga is a great way to keep you calm and focused,” says new york city is seeing a run on petitors. Esquire Bank, which this summer.The code— Mr. Rubler, who wears his wavy brown hair long. “My wife banks—to open them, that is. opened in October, is targeting which was completed last week Seven new banks started in the Brooklyn law firms. Organizers of after a four-year effort—is and I are also art collectors—contemporary art is important last two years, and 10 more are in Alma Bank hope to serve the Greek intended to modernize to me.” formation.In contrast,not community in Astoria, building requirements and So are real estate deals: Mr. Rubler has gobbled up sev- a single new bank opened Queens.Savoy Bank,form- See AT DEADLINE on Page 2 See YOUNG DEALMAKERS on Page 10 from 2001 through 2004. $10M ing in Manhattan,is target- MINIMUM buck ennis Call it a marriage of ing very small businesses in amount money and talent. More of capital Hell’s Kitchen. Organizers 19 high-ranking bank execu- needed to of CheckSpring Bank in the 5 FIND VENUES WITH tives are available to run open a bank Bronx plan to cash checks CRAIN’S MEETING banks because of a wave of for immigrants without mergers in recent years. And given bank accounts to draw them into ELECTRONIC EDITION PLANNERS GUIDE the booming economy and out- the banking system. SEE PAGE 19 look, investors are eager to provide “Banks with a unique ethnic NEWSPAPER backing. See BANK on Page 8 71486 01068 0 CNYB 05-07-07 A 2 5/4/2007 6:40 PM Page 1 AT DEADLINE Continued from Page 1 Inc. Investors had previously Turning a geeky idea bring them in line with national pushed shares of the standards. It calls for so-called Manhattan-based company to a black iron to be used in the 52-week high amid speculation construction of ceilings in new that Microsoft was willing to commercial buildings. “I don’t pay $1 billion for 24/7.The understand why New York City acquisition of 24/7 would help into a $2.8 billion deal is the only place in the country Microsoft counter rival Google that requires this,” says Steven Inc.’s $3.1 billion acquisition of Spinola, president of the Real Manhattan online ad company Bid for upstart options exchange Estate Board of New York. DoubleClick Inc. last month. REBNY also objects to a few Shares of 24/7 closed Friday at comes as competition heats up other provisions, including one $11.28, down 8.8%. that would require residential builders to hard-wire bedroom ALTHOUGH THE DOW JONES BY AARON ELSTEIN smoke alarms to building INDUSTRIAL AVERAGE is at a hallways. Council hearings could record high, retail investor a decade ago, no one was interested in Gary Katz’s bright idea. begin as early as June. activity remains 45% below the The New York Stock Exchange executive wanted the institution peak set in March 2000, to trade options, but his push was met with nothing but THE ORGANIZERS OF MAKE according to a report last week MUSIC NEW YORK, a daylong from Banc of America resistance from traders. He eventually got tired of festival set to debut on June 21 Securities. In addition, the trying and quit the NYSE. with 1,200 free concerts, have American Association of Today, Mr. Katz finds himself the center of received a major boost from Individual Investors reported City Hall. Officials are no that 54% of people polled expect attention.The International Securities Exchange, longer requiring sponsors of the market to fall. an electronic options marketplace that he co- sidewalk concerts to get permits founded in 2000, is one of Wall Street’s biggest and buy insurance—a change FASHION DESIGNER JERRY TAM IS success stories. Last week, Frankfurt-based that will save the festival PRODUCING high-style thousands of dollars. In T-shirts to bolster his emerging Deutsche Börse Group offered to buy the ISE addition, AM New York has label Form while he waits for for $2.8 billion in cash—a 48% premium. agreed to print a 16-page major retailers to pick up the full Even Mr. Katz is a bit amazed. supplement listing times and line. Henri Bendel and Neiman “You can sit and smile for hours thinking locations of the concerts and Marcus are among those that will donate ad revenue to the have passed on Form for the fall how things have come full circle,” he said in an festival. Aaron Friedman, the season. Mr.Tam, who invested interview shortly before the deal was struck. festival’s founder, has unveiled a his life insurance in Form “We’re the prettiest girl at the dance.” Web site and says he needs to (Crain’s, Feb. 18), is one of many raise $25,000 to stage the event. designers trying to get a foothold And quite a dance it is.The deal is the first in the increasingly competitive of an expected wave of transactions that SHARES OF DIGITAL ADVERTISING apparel market.The T-shirts will could include the Chicago Board Options FIRM 24/7 REAL MEDIA INC. fell be sold in a handful of boutiques Exchange—the nation’s No. 1 options Friday after news reports that nationwide at a price of between Microsoft Corp. is in $100 and $200. ✟ marketplace—and the Philadelphia Stock preliminary talks to buy Yahoo Exchange, the third-largest. Interested buyers include the New York CORRECTIONS Stock Exchange and Nasdaq Stock Market.The Fútbol Mundial is a monthly. Its frequency was misstated in the April 30 “New York, New York” column. two operations are hungry to expand their share The Plaza will have 282 hotel rooms and 181 residences when it reopens in the fall. The See OPTIONS on Page 8 numbers were misstated in the April 30 “New York, New York ” column. REVENGE OF THE NERDS: “You can sit and smile for hours thinking how things have come full circle,” says International Securities Exchange exec Gary Katz. gibbons catherine THIS WEEK IN CRAIN’S GREG DAVID ------------------------------------13 THE INSIDER------------------------------------14 Recruiters raise the stakes REAL ESTATE DEALS--------------15 shortage of educated workers—es- dict that by 2010, jobs could out- WEEK IN REVIEW ----------------------- 16 Offer job training, pecially in math and sciences—and number skilled workers by the mil- NEIGHBORHOOD iPods, bonuses to a city unemployment rate hovering lions.