Crains New York - August 6, 2012 - (Page 2)

STATS AND THE CITY THE SIZE OF THE COMBINED FOOTPRINT of media and communications companies in Manhattan jumped past the amount of office space leased to legal firms in July. Media and communications tenants now trail only the financial sector, the longtime top dog, which occupies twice as big a slice of the city. Percentage of total Manhattan commercial space leased to various sectors for offices of 5,000 square feet and up FYI A CRAINSNEWYORK.COM Financial services 26% Communications/ media 13% Your basic Knightmare dd one more gruesome selfinflicted wound to the financial sector’s growing litany of them. A software glitch last week at New Jersey-based Knight Capital Group, a major stock-trading firm, sent shares in a number of companies gyrating in a torrent of nonsensical, automated buy-and-sell orders. The screwup could cost Knight $440 million. Already CEO Thomas Joyce is frantically seeking a buyer to rescue his stricken firm. By the way, only a few months ago he was blasting Nasdaq for manhandling Facebook’s IPO. Speaking of complaining, 11-branch Berkshire Bank became the mouse that roared in the LIBOR scandal by filing a purported class-action suit against 16 big banks for manipulating the London interbank offered rate. Berkshire says the fraud cheated the bank out of income by artificially depressing interest rates. Expect many, many more of these suits. Meanwhile, The Wall Street Journal reported that the Royal Bank of Scotland is negotiating a settlement with regulators investigating the LIBOR mess. What settlement it may ultimately have to reach with the likes of Berkshire Bank may take years to sort out. Wall Street did catch one dubious break when the U.S. government failed—again—to convict a Wall Streeter charged with wrongdoing leading up to the financial crisis. A former Citigroup Inc. employee named Brian Stoker had been charged with failing to tell investors that his bank was betting against a $1 billion package of mortgage-backed bonds it sold in 2007. A jury cleared Mr. Stoker but urged the feds to keep trying to bring bankers to justice. And no doubt they will. —aaron elstein that). Question is, is this first-ofits-kind-in-the-nation effort a good idea, especially given Wall Street’s own crime wave (see above)? ... PFIZER PFINDS A WAY. Despite generic versions of its bestselling cholesterol-lowering drug Lipitor flooding the market, mighty Pfizer Inc. still managed a surprising 25% jump in profit in the second quarter. True, much of the gains flowed from a hefty dose of costcutting,but management has shown it can do more than survive. ... DAFFY’S SILVER LINING. JEMB Realty Corp. is buying Daffy’s Inc. out of bankruptcy. The news came a day after the discount retailer filed for protection from creditors, due in part to pressure from online retail competition. What remains to be seen is whether JEMB sees any value in the Secaucus, N.J.-based 19unit chain beyond its real estate. A JEMB affiliate will reportedly buy three properties from Daffy’s. ... MADOFF TRUSTEE CRIES FOUL. Irving Picard, the court-appointed trustee seeking money for victims of Bernard Madoff ’s Ponzi scheme, is insisting that he, not New York Attorney General Eric Schneiderman, has first dibs on money recovered from the fraud. At issue is a $410 million settlement the AG struck with hedge fund manager Ezra Other 11% Apparel/ manufacturing 7% Government 6% Nonprofits 5% Health/ insurance 5% Tech/ telecom 3% Business services 4% Retail Advertising/ 4% PR 4% Source: Jones Lang LaSalle RUNNING NUMBERS 173K 2:19:59 MILES NYC WORLD RECORD subway cars travel set by N.J. native on average Rebecca Soni in between the 200m breakdowns breaststroke Source: NYPIRG Straphangers Campaign Source: International Olympic Committee RISE in financialRANK of JFK sector job cuts among U.S. airports for its through July vs. a year earlier potential to spread diseases Source: Challenger Source: MIT Gray & Christmas Inc. 1 79% ADDICTED TO NUMBERS? GET A DAILY DOSE AT @STATSANDTHECITY THIS WEEK IN CRAIN’S IN THE BOROUGHS-------------------------- 3 IN THE MARKETS ----------------------------------4 THE INSIDER -----------------------------------------------6 BUSINESS PEOPLE ---------------------------7 OPINION -------------------------------------------------------------8 GREG DAVID ------------------------------------------------9 FROM AROUND THE CITY----10 REPORT: BUSINESS OF SPORTS ------------------------------------------11 CLASSIFIEDS -----------------------------------------28 SMALL BUSINESS --------------------------31 REAL ESTATE DEALS -------------------31 HELLUVA TOWN ----------------------------------33 SOURCE LUNCH --------------------------------34 OUT AND ABOUT ------------------------------35 NEW YORK, NEW YORK Talk about your early adopters: iPads, Kindles and other e-readers are becoming common accessories for New York tots. P. 33 CORRECTIONS Investment bank NearEarth successfully raised money for its client NanoRacks. That fact was not clear in the July 30 “Funding draws a crowd.” Leslie Koch is the president of the Trust for Governors Island. Her title was misstated in the July 30 “If I had a hammock.” Christopher Zarus is vice president of business development at International Tasting Group Consulting, which markets tequilas that compete with Casa Dragones. That fact was not included in the July 30 “Radio station break.” Force-placed insurance is coverage that homeowners are required to buy if they allow their existing hazard policies to lapse. The policies were mischaracterized in the May 28 Cheat Sheet. vol. xxviii, no. 32, august 6, 2012—Crain’s New York Business (issn 8756-789x) is published weekly, except for double issues the weeks of July Fourth, Labor Day and Christmas, by Crain Communications Inc., 711 Third Ave., New York, NY 10017. Periodicals postage paid at New York, N.Y., and additional mailing offices. Postmaster: Send address changes to: Crain’s New York Business, Circulation Department, 1155 Gratiot Avenue, Detroit, MI 48207-2912. for subscriber service: Call (877) 824-9379. Fax (313) 446-6777. $3.00 a copy, $99.95 one year, $179.95 two years. (GST No. 13676-0444-RT) ©Entire contents copyright 2012 by Crain Communications Inc. All rights reserved. BLOOMBERG’S TARGET. Gunfire that injured six more innocent New Yorkers late last month moved Mayor Bloomberg to take another swing at illegal guns on the street. “We are worried about the increase in shootings,” said the mayor, who nonetheless noted that “the good news is we’re still on a record for a low murder rate.” The problem is that far too many people are still being hurt,if not killed,in shooting incidents that are up 10% year-overyear. ... STICK A FORK IN IT. Unable to repay a $350,000 loan, restaurateur Nino Selimaj, owner of and TV pitchman for a half-dozen Italian eateries, filed for Chapter 11 bankruptcy protection. The filing covers him personally as well as his restaurants Nino’s, Nino’s Bellissima Pizza, Nino’s Positano, Nino’s Tuscany Steakhouse, Osso Buco and Scarpina Bar & Grill. Happily, New Yorkers still have plenty of Italian restaurants to choose from. ... CITY HALL INVITES GOLDMAN SACHS TO RIKERS. Goldman Sachs will invest nearly $10 million in a program designed to reduce the rate of recidivism among young offenders at Rikers Island. If the effort goes according to plan, Goldman makes a profit. If it fails to do so, the city doesn’t have to pay Goldman back (a Bloomberg foundation will do HOORAY! COLUMBIA UNIVERSITY will spend $80 million to build an Institute for Data Sciences and Engineering. NYC will kick in another $15 million. OY VEY! BRONX-BORN star gymnast John Orozco stumbled in competition, and his team fell to a fifth-place Olympic finish. Merkin after accusing him of funneling billions of dollars to Mr. Madoff without investors’ knowledge. Mr. Picard wants the courts to give him control of that pile of cash. Meanwhile, Mr. Madoff ’s many victims—including several charities—wait on. —lauren elkies STORIES TO WATCH THIS WEEK Aug. 7: Audit Bureau of Circulations posts data on how magazines fared in first half. Aug. 8: City Council hearing on Board of Elections’ bungled handling of the June primary. Aug. 8: Planning Commission reviews plan to sell two buildings to private developers. Aug. 9: Judge to make official a 40years-to-life plea deal with Leiby Kletzky’s killer. 2 | Crain’s New York Business | August 6, 2012 newscom newscom Legal services 12% http://www.CRAINSNEWYORK.COM

Table of Contents for the Digital Edition of Crains New York - August 6, 2012

Crains New York - August 6, 2012
Contents
In the Boroughs
In the Markets
The Insider
Business People
Opinion
Greg David
From Around the City
Report: Business of Sports
Classifieds
Small Business
Real Estate Deals
Helluva Town
Source Lunch
Out and About

Crains New York - August 6, 2012