20120730-NEWS--0001-NAT-CCI-CN_-- 7/27/2012 7:05 PM Page 1 TEQUILA SHOTS WITH BOB PITTMAN The MTV founder and media exec owns the brand P. 21 CRAIN’S® NEW YORK BUSINESS VOL. XXVIII, NO. 31 WWW.CRAINSNEWYORK.COM JULY 30-AUGUST 5, 2012 PRICE: $3.00 Quiet bank suddenly makes noise Apple Bank for Savings acquires 30 branches, but stays mum on growth plans BY AARON ELSTEIN Earlier in July,Apple Bank for Savings did something completely out of char- acter: It made news. The thrift an- nounced it would acquire 30 branches from Emigrant Savings Bank in a move that will add $3.3 billion in de- posits to its vaults. And that’s where the announce- ment basically ended. Apple was F mum on several INCREASE60% key details about in Apple Bank’s the acquisition, its market share after it acquired 30 first in 17 years. It Emigrant declined, for in- branches. stance, to say how much it paid,and it didn’t elaborate on how much the deal would increase the bank’s market Silicon Subway share locally. (The answer: by 60%.) Such muteness is entirely typical for the bank, which How the F line links NYC’s most entrepreneurial is owned by the estate of a prominent real estate developer and whose web- neighborhoods. Come tour tech’s tri-boro bridge site lacks such basic information as the names and titles of senior manage- ment or board members. (A spokes- woman said information about Apple officers is published elsewhere on an at Bergen Street—a tech company that the F train has become more “as-needed basis.”) IN THE was born. A year later, after raising than a line of convenience for the “To say they’re under the radar BOROUGHS $2.5million in seed money, founder city’s tech companies, funders and doesn’t fully describe how quiet they BROOKLYN Zephrin Lasker shifted his compa- staffers alike.Today,it also ranks as are,” said RBC Capital Markets ana- MANHATTAN ny to its first office, on Washington a powerful drawing card. lyst Gerard Cassidy. “But their ap- Street in Dumbo, Brooklyn, just Talented tech workers are pitch- proach seems to work for them.” QUEENS two stops down on the F line. To- ing their tents in Brooklyn bed- Apple may be New York’s quietest day, with 60 employees, Pontiflex room communities like Ken- bank, but it’s also one of its most suc- BY AMANDA FUNG occupies larger quarters across the sington and Carroll Gardens, and cessful. It remained profitable street,and Mr.Lasker finds himself in the morning rolling up the rails throughout the financial crisis, thanks Five years ago, in a loft apartment spending more time than ever on to their jobs in Dumbo and Man- to a stable, risk-averse management in Cobble Hill, Brooklyn—a half- the subway line. hattan’s Flatiron district. They See APPLE BANK on Page 20 dozen blocks from the F-train stop “We meet with ad agencies and aren’t yet traveling north, up to MOBILE advertisers in Manhattan, so we Roosevelt Island,but that is expect- PLATFORMS: Zephrin Lasker just hop on the F train,” said Mr. ed to change when CornellNYC commutes and Lasker,whose company has devel- Tech opens its 2-million-square- conducts oped a technology that places ads foot campus there in 2017. business all on mobile phone applications.“It’s That is exactly what Cornell along the a good link for us.” University President David Skor- F line. Call it the Silicon Subway or ton,who regularly refers to the line See F TRAIN on Page 20 whatever you want, but the fact is buck ennis NEWSPAPER 20120730-NEWS--0002-NAT-CCI-CN_-- 7/27/2012 8:14 PM Page 1 STATS AND THE CITY BUMPER CROP: In recent years, a total of 700 food-producing gardens and farms have taken root in the five boroughs—including 390 community gardens and 117 school gardens. That’s more than twice the number of Starbucks that have sprouted here. FYICRAINSNEWYORK.COM Food-producing gardens/farms 700 Banking’s black eyes or the big banks it is, to borrow a phrase from the Kinks’ Ray Davies, “a Starbucks outposts Fmixed-up, muddled-up, shook-up world.” It starts with the growing investigation into 256 banks conspiring to manipulate LIBOR, the London interbank offered rate. Last week, British Source: Design Trust for Public Space, Center for an Urban Future istockphoto authorities served subpoenas to Lloyds Bank, and numerous RUNNING NUMBERS other institutions are under scrutiny. Meanwhile, it was reported that the former operations chief at Barclays was set to receive a $13.6 million exit 42 955M 46% $71,790 package, even though he was forced out after his bank coughed up more than $450 million to NYC-AREA ACTIVE SURVEYED MEDIAN INCOME settle LIBOR manipulation charges. athletes Facebook users New Yorkers who in downtown competing in the in June, up from say they swear at Brooklyn area in Over at JPMorgan Chase in London, officials at the Bank of England “raised concerns Olympics, out of 750M in work; D.C. was 2010, up 40% 10,490 total July 2011 No. 1, at 62% since 2005 internally” about the “London Whale” trades that led to the bank’s $5.8 billion loss (and Source: WNYC, Source: Source: Source: NYS counting), yet failed to alert other regulators, according to The Wall Street Journal. Sigh. London 2012 Facebook Inc. CareerBuilder Comptroller But the biggest surprise came from the former CEO of Citigroup, Sandy Weill, who told CNBC that big banks should be broken up. It was a stunning statement, considering that Mr. SLOWER TAKEOFF Weill dedicated 20 years of his career to assembling the giant that became Citi, and even Growth in the number of passengers flying to/from NYC has slowed. personally lobbied Congress to overturn the Glass-Steagall Act so his vision of a “financial NYC area airports’ total paying passengers supermarket” could go through. Mr. Weill left Citi years ago, but it seems likely his about-face will have some effect, particularly as U.S. regulators in the coming weeks and months draft % change year-over-year 9.9% rules governing big banks. —aaron elstein CON ED WORKERS PLUGGED BACK IN. came part of IAC Chairman Barry The 26-day lockout of 8,500 Consol- HOORAY! 5.7% Diller’s media holdings in 2011 when 5.20 4.8% 5.0% idated Edison workers came to an it merged with IAC’s Daily Beast Co. end. With prodding from Gov. An- … CHELSEA MARKET SEEN IN NEW drew Cuomo, Con Ed and its union LIGHT. At hearings last week on a pro- succeeded in working out a four-year posed rooftop addition to the Chelsea 1.1% deal that sent workers back to their Market, City Planning Commission 12/11 1/12 2/12 3/12 4/12 5/12 NYU EXPANSION PASSES. Source: Port Authority of New York and New Jersey jobs. … New Chair Amanda Burden asked point- York University’s plan for a huge ex- ed questions about what impact it CSX TRANSPORTATION has donated the ADDICTED TO NUMBERS? GET A DAILY DOSE AT @STATSANDTHECITY pansion of its sprawl- might have on light at last section of the High Line to the city. ing Greenwich Vil- the High Line next Turning this third leg into a lush park will lage campus won final ‘I’m not door. “How much of cost roughly $90 million. approval from the overweight that sky will you take THIS WEEK IN CRAIN’S City Council,but only away?”she asked an ar- OY VEY! after a series of com- because of big- chitect working for promises that scaled landlord Jamestown FOUR PEOPLE in three IN THE MARKETS --------------------------------- 4 gulp sodas. It’s weeks were injured the project back by Properties on the proj- from needles littering THE INSIDER -----------------------------------------------6 about a quarter, to 1.9 because I eat ect. The company has NYC beaches. The Parks Dept. is BUSINESS PEOPLE ---------------------------7 million square feet. too much already dialed back its promising a Along the way,several plans. Further (down- clean-up. REAL ESTATE DEALS -----------------------9 bells and whistles pasta, pastrami ward) adjustments are Good idea. OPINION --------------------------------------------------------10 were added for the sandwiches, likely, as NYU discov- benefit of the school’s ered. … CORRUPTION ALAIR TOWNSEND ------------------------- 11 neighbors. Some op- bagels and FELLS BRONX POL. transfer station on the East River on GREG DAVID--------------------------------------------11 ponents vow to fight cream cheese Bronx City Council- the Upper East Side won the final on in court,but the die man Larry Seabrook thumbs-up from the U.S. Army SMALL BUSINESS-------------------------- 12 looks to be cast. … and lox, red was found guilty of Corps of Engineers. Work on the CLASSIFIEDS -----------------------------------------16 STORIED DEAD-TREE velvet cake, conspiracy and fraud $240 million project will begin by TITLE BITES DUST? charges in connection year’s end. … GAY WEDDINGS’ RICH FOR THE RECORD--------------------------- 19 While reporting a cheesecake.’ with laundering city DIVIDEND. One year after the start of — B’klyn Borough Prez CORPORATE FINANCE: FROM AROUND THE CITY----20 modest increase in its money through non- same-sex marriage in New York, it second-quarter profit, Marty Markowitz profit organizations he looks like it’s been a big success for the A new law allows startups to NEW YORK, NEW YORK ----------21 raise cash without the help of IAC/InterAc- controlled. Among city itself,with big gay nuptials gener- SOURCE LUNCH-------------------------------- venture capital firms. Plus: 22 tiveCorp revealed it may turn other things, Mr.