Banks Act to Rework Mortgages
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CNYB 06-09-08 A 1 6/6/2008 8:31 PM Page 1 TOP STORIES BUSINESS LIVES iPhone addicts Power-hungry are consumers thwart hooked conservation effort forever PAGE 2 ® PAGE 35 Book publishing shake-ups signal industry shift VOL. XXIV, NO. 23 WWW.CRAINSNEWYORK.COM JUNE 9-15, 2008 PRICE: $3.00 PAGE 3 Longing for Mike LOVIN’ SPOONFULS shouldn’t mean Banks act ending term limits Yogurt shops EDITORIAL, PAGE 10 to rework Malpractice reform effort will end sweet on city with a whimper But growing competition mortgages THE INSIDER, PAGE 12 could freeze some of them out Lenders step up SMALL BY ADRIANNE PASQUARELLI efforts to help BUSINESS homeowners; 6 owners plot lately, New Yorkers can’t walk a few blocks without run- ning into a frozen yogurt shop.The count has gone from the will it be enough? hard-earned low single digits to more than 30 storefronts in the past 20 summer escapes months alone. And with summer’s steamy heat on the way, BY DANIEL MASSEY PAGE 21 the craze won’t wane any time soon. Where there were photo labs and thrift stores, there are with the number of New York now Yolatos and Berrywilds. Industry giants Pinkberry and City mortgages in foreclosure at its Red Mango, chains that kicked off expansion in California, highest level in at least 15 years, have opened multiple New York locations and have plenty lenders are intensifying their ef- See YOGURT on Page 8 forts to help borrowers hold on to their homes. Mortgage servicers completed 1,560 loan workouts in New York lindström bekka during the first two months of the year,up from 1,027 in the first three warnings of foreclosure, and no- months of 2007,says Hope Now,an body was doing anything except alliance of mortgage companies and demanding your money,”says state investors. Nationally, mortgage Sen. Jeff Klein, D-Bronx. “Now, companies handled 183,000 work- lending institutions are much outs in April, a 14% increase over more willing to modify loans.” AT DEADLINE March levels, Hope Now reports. Nevertheless, the number of “In the past, lenders sent out See MORTGAGE on Page 8 SHARES OF NEW YORK INVESTMENT BANKS AND retailers dropped sharply on Friday as the Dow Jones Industrial Average plunged Calif. crane rules 394.64 points—more than 3%—on bad economic news. Shares of Morgan Stanley model for New York dropped 8.5% to close at $40.81, and shares of J.P. Morgan Chase & Co., cially in recent years, as construc- Goldman Sachs Group Inc. Tough measures, tion cranes have become as ubiqui- and Lehman Brothers tous as street vendors hawking Holdings Inc. all fell more no accidents knockoff watches and designer SAM MARELLI than 4%. New York retail says sales for his and lower costs handbags. The recent tragedies stocks also were hurt Friday, first Berrywild shop here, which killed seven people, with half a dozen average around have exposed weaknesses in the companies—including Macy’s $2,000 a day. BY THERESA AGOVINO city’s regulatory system. Inc., Phillips-Van Heusen “For 25 years, we’ve Corp. and Jones Apparel nineteen years ago,in been operating with the Group—losing more than 5% the wake of a horrendous attitude ‘if it ain’t broke, of their share value. crane accident in San Fran- 75% don’t fix it,’ ” says Louis INCREASE in cisco, California adopted permits for new Coletti, president of the LONG LINES ARE A PROBLEM the toughest safety regula- buildings in Building Trades Employ- FOR THE STATUE OF LIBERTY tions in the nation. Since Manhattan in ers’ Association. “What See AT DEADLINE on Page 2 then, buildings containing past five years has surfaced is [a feeling] tens of millions of square that the system is broken, feet have gone up across the state— and we are looking at a total repair.” 23 all without one single fatality from Observers are now looking west 5 COMINGNEXT WEEK a crane accident. to California, where experts point New York’s bold efforts to provide Here in New York, two deadly to two critical regulations that con- health coverage to THE UNINSURED hit a crane accidents within just three tribute to the state’s vastly im- ELECTRONIC EDITION political snag. A look at the problem months are raising questions about proved safety record. First, the and the solutions. why New York City never em- state requires that tower cranes un- NEWSPAPER braced California’s model—espe- See CA CRANE on Page 8 71486 01068 0 CNYB 06-09-08 A 2 6/6/2008 7:54 PM Page 1 AT DEADLINE U.S. News cuts schedule Continued from Page 1 former Gov. George Pataki to months after Statue Cruises join its board of directors.The from 46 last year, but the move to and 32.7% at U.S.News,according to took over the National Park trash and lawn bags are the No. 3 news title publish only every other week— Media Industry Newsletter. Service contract.The company latest venture from Chief to publish biweekly with occasional special issues—pro- Readers are defecting as well. says its new online ticket Executive Tony Tracy, who also vides the strongest signal yet that Time reported average paid circula- reservation system, which was created the Ab Roller. He beginning in 2009 the ground has permanently shifted tion of about 3.4 million for second- designed to reduce waiting expects the biodegradable items under the format. half 2007, down 17.6%. Newsweek’s times, has not caught on. to hit shelves later this year in “ ‘News’ and ‘week’ become an average was flat at 3.1 million and Instead, customers are buying nationwide chain stores such as BY NAT IVES oxymoron,” says Brian Kel- U.S. News also reported flat their tickets when they arrive at Wal-Mart and Walgreens. ly, editor of U.S. News,de- circulation,at just over 2 mil- the ferry terminal.They then u.s. news & world report, the scribing the effect of media 32.7% lion. WATERFRONT MEDIA INC., THE DECREASE in must wait to clear security, longtime No. 3 weekly news maga- competition. ad pages at U.S. News plans to pro- whereas online purchasers BROOKLYN-BASED PUBLISHER zine, will drop to a biweekly sched- Some ad buyers approve U.S. News vide instant updates and vast receive priority. of EverydayHealth.com, has ule next year, effectively ceding the of the plan. so far stores of reference material acquired California search troubled category to larger rivals “It’s a very smart, strate- this year. online. MORE THAN 120,000 PEOPLE marketing firm Netramind to Time and Newsweek, Advertising gic move,” says Brenda “Because we’re able to ATTENDED THE FIRST WORLD help overtake WebMD as the Age reports in today’s edition. White, senior vice-president at provide our audience with much Science Festival, far exceeding nation’s leading health In an increasingly competitive Starcom Worldwide. “When you more current information on the the organizers’ expectations. information site. Netramind, environment, all three traditional think about it, what their brand Web, it frees us up to do better sto- The five-day festival, which which specializes in online newsweeklies have taken such steps stands for is the rankings.There is a rytelling in print,” Mr. Kelly says. ended June 1, offered 40 marketing, helps Web as cutting paid-circulation guaran- franchise there.” programs that ranged from publishers increase traffic to tees. U.S.News has already trimmed So far this year,ad pages are down Nat Ives is a reporter for Advertising Age, lectures by Nobel Prize winners their sites by optimizing the use its frequency to 36 issues this year 23.7% at Newsweek, 27.2% at Time a Crain publication. to physics-themed dance of search engines.Terms of the performances at the deal were not disclosed. Guggenheim Museum. Planners, who expect the festival THE NATIONAL LABOR to become an annual attraction, RELATIONS BOARD HAS ISSUED are already working on next a multicount complaint against year’s.They also hope to expand the Bronx nursing home where the festival throughout the five 220 members of 1199 SEIU Getting all juiced up boroughs.This year’s events have been on strike since were held at 17 venues, with February (Crain’s, May 19).The most of them near New York charges filed against the Peak demand looms as conservation efforts falter University. Kingsbridge Heights Rehabilitation and Care Center BY MATTHEW SOLLARS PERF GO GREEN WILL BEGIN allege that management failed SELLING ITS FIRST PRODUCT, to make payments to the new yorkers are expected to pay at least 13% more for electricity this summer than last, but eco-friendly plastic bags, later workers’ benefit fund, that was the furthest thing on Dr. Carter Dillman’s mind when he set out to buy an this month on Drugstore.com. conducted surveillance of union entertainment system last month. The Manhattan company went members and threatened Dr. Dillman shelled out about $4,000 for a 40-inch LCD flat-screen TV and a high-end public in May and recruited workers with termination. audio system to replace his 26-inch set. Largely because of its size, the new TV will require roughly twice as much electricity. CORRECTIONS “I’m energy-conscious; I’m not wasteful,” Dr. Dillman says. “But if you want the The asking rent at 245 Fifth Ave. is $56 a square foot. The rent was misstated in the June 2 performance, if you want the toy, you’re going to buy it.” “Real Estate Deals” column.