Crain's New York Business

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TECHNOLOGY

After FTX crash, city crypto rms focus on

BY CARA EISENPRESS

In 2014 crypto was a storied upstart industry centered in the New York equivalent of the garages of Silicon Valley—gra ti-covered Bushwick warehouse space.

Just seven years later it was a lead driver of tech-sector growth in the city, with the number of rms in blockchain and cryptocurren-

cy tripling between 2016 and 2021. Early this year cryptocurrency startups accounted for four of the top ve unicorns—private tech rms valued at $1 billion or more.

Now as FTX, the Bahamas-based cryptocurrency exchange worth $32 billion just a month ago, disintegrates in plain view, bringing nancial and other crypto rms with it, and the global industry awaits news of exact-

ly how many players will be caught in the headwinds, city companies and leaders say they are still all-in on crypto.

“We want to support it,” Andrew Kimball, CEO of the New York City Economic Development Corp., said at a Crain’s event on Nov. 16. “As with any new sector, there is some shakeout involved.”

Local companies, meanwhile, are using

the moment to argue that trust, regulation and the blockchain’s core promise of decentralization are more important than ever at a time when no one—particularly a big-talking executive such as FTX’s Sam BankmanFried—seems trustworthy.

“Ironically, Web3 is about giving control of

BY CARA EISENPRESS

Apost-Covid New York, as imagined by its economic development leaders, could be a city of neigh borhood hubs where residents both live and work.

“The districts doing the best are the mixed-use districts,” said An drew Kimball, president of the New York City Economic Development Corp., at a Crain’s event last Wednesday. “The days of old where people go on the subway and work and leave—those days are over.”

His insight leads to two priorities for the city, Kimball said: to hold onto local booms in outer-borough areas from Jamaica, Queens, to Morris Park in the Bronx—where fewer commutes out in 2020 and 2021 resulted in more foot traffic on

Reserve’s data.

Bringing more jobs closer to where people live could solve the hassles of hybrid work and the fu ture crunch on the city's public transit system, should the popula tion grow past 8.5 million, toward 10 million, as forecasters once predict ed. Kimball said that a “new” New York panel, chaired by Richard Buery, CEO of Robin Hood, and Daniel Doctoroff, former deputy mayor under Michael Bloomberg, would lay the foundation for busi ness-district housing plans in the coming weeks.

On the horizon

main streets and dollars to coffee shops—and to incentivize more housing in central business dis tricts.

“We need to be smart in neigh borhoods like Midtown,” Kimball said.

In 2019 the average commute in the city was 32 minutes each way, according to the St. Louis Federal

One of the largest upcoming proj ects is the second phase of the Wil lets Point redevelopment, an nounced last week (see below). The 23-acre project includes a privately financed 25,000-seat soccer stadium for the New York City Football Club, 2,500 units of af fordable housing in sev en buildings and a 250room hotel. Private investors are putting $1 billion into the plan, with $780 million from the New York City Football Club for the stadium and one-third for the hotel. The city owns the land; it will lease it to the soccer team and a group of developers.

Kimball, the longtime Industry City CEO who became chief of the nonprofit corporation in February,

hit on a wide range of other eco nomic development priorities, in cluding:

● Increasing the number of man ufacturing jobs in various technol ogy sectors, including microchip development, to support the Mi cron semiconductor factory up state, life sciences, public health and “green jobs,” including in the offshore wind industry as tens of thousands of turbines are installed off the coast in coming years.

● Sustaining the city’s tech econ

omy even amid the wave of layoffs. “I’m optimistic about big tech here. … This is where the talent wants to be,” Kimball said. He qualified his optimism with the caveat that there could be a “reset” in the technology workforce but that it could resume its rise.

● Understanding why the elec tion of Kathy Hochul as governor will bode well for the city. Having a Democratic federal administration, in addition to Democrats in state and local offices, will all but guaran

tee a steady flow of investment in the city’s priorities, including Man hattan’s first science park and re search campus, which required col laboration among levels of government. “We have a federal government pumping money into economic opportunity at the local level,” Kimball said.

● Developing the Bronx’s Kings bridge Armory into a space that is useful for the area and the city. “If anyone has any ideas, come to us,” he told the audience. ■

POWER BREAKFAST

Mark your calendar to hear from Maria Torres-Springer, the city’s deputy mayor for economic and workforce development, interviewed live onstage by Crain’s Publisher and Executive Editor Fred Gabriel. Find out about her vision for the city’s post-pandemic future. This event will also provide an opportunity to talk about the progress the Adams administration has made in getting the city back on its feet and the challenges it still faces as we head into 2023.

DETAILS

Time: 9 to 10:30 a.m.

Location: 180 Central Park South CrainsNewYork.com/pb_torres-springer

BY EDDIE SMALL

The next phase of the Willets Point, Queens, transforma tion calls for 2,500 affordable housing units, a 250-room hotel and a $780 million soccer stadium for the New York City Football Club, said Andrew Kimball, president and CEO of the New York City Eco nomic Development Corp., at a Crain’s Power Breakfast last Wednesday (see above).

The 25,000-seat stadium, slated for completion by 2027, will be lo cated next to Citi Field, home to the New York Mets. Queens Develop ment Group, a joint venture of The Related Cos. and Sterling Equities, will develop the project, and S9 Ar chitecture will design it. Construc tion should begin next year, and the Adams administration estimates it will add $6.1 billion to the city economy in the next three decades.

CORRECTIONS

The New York City Football Club will foot the bill for the stadium, with neither tax-exempt bond fi nancing nor direct city capital infu sions. The team currently plays its home games at Yankee Stadium.

The 2,500 housing units in the project will be spread across seven buildings overall, including one building with 220 units for low-in come seniors. The project will also include more than 40,000 square feet of open public space and retail space. The city estimates the proj ect will create 14,200 construction jobs and 1,550 permanent jobs.

The first phase of the project con sists of 1,100 of the 2,500 affordable housing units, a 650-seat public school, infrastructure investment and new public open space. Relat ed recently filed plans with the De partment of Buildings for two 12-story developments on 39th Av enue in Willets Point, a portion of

Updated profiles for several of the 2022 Notable in Real Estate appear at CrainsNewYork.com. Crain’s regrets the errors.

the project that will bring about 900 af fordable housing units to the Queens neighborhood. The building at 126-43 39th Ave. will span about 527,000 square feet with 534 residen tial units, and the building at 126-55 39th Ave. will span about 333,000 square feet with 347 residen tial units.

A decade in the making

The city has been working to re develop Willets Point for more than 10 years. In 2007 former Mayor Mi chael Bloomberg released the neighborhood’s master plan, but it took 11 more years—along with an extremely contentious legal fight— for the city to strike a deal with Re lated and Sterling to develop 6 acres of land by Roosevelt Avenue and Willets Point Boulevard.

The New York City Economic De velopment Corp. had released two

proposals for the second phase of the project in early 2019, one of which called for a soccer stadium with as many as 25,000 seats, rental housing, a public high school, retail space, and new fire and police sta tions. The other called for residen tial development across six blocks, a fire station, a health center, retail and open space, and a public high school.

Kimball touted the next phase of the plan as “a bold step forward” during the Crain’s Power Break fast. ■

KIMBALL

BY RAINA LIPSITZ

On an election night that saw Democrats do surprisingly well nationwide, the leader of that e ort, Rep. Sean Patrick Maloney, became the rst chair of either party’s House campaign committee to lose a race for re-election since 1992.

How did a ve-term incumbent such as Maloney lose in a district where Democrats outnumber Republicans by 70,000? Given Democrats’ stronger-than-expected showing nationwide, why couldn’t the Democratic Congressional Campaign Committee chair hold onto his own seat?

Maloney had establishment backing: the support of House Speaker Nancy Pelosi as well as former President Bill Clinton, who campaigned for him. Maloney raised nearly $5 million in the 2021-22 cycle, almost ve times as much as his opponent raised. Yet in NY-17, which includes Rockland, Putnam and parts of Westchester and Dutchess counties, Maloney lost to Mike Lawler, a rst-term assemblyman who was relatively unknown outside of his Rockland County district.

A representative from the Maloney campaign shared a news conference clip with Crain’s but declined a request for an interview. What happened in NY-17 was part of a trend in a number of New York suburbs this year, where residents came out in droves to support Republican candidates. e change is notable. In NY-3—a Long Island district Joe Biden won by a double-digit margin in 2020—Republican George Santos beat Democrat Robert Zimmerman by more than eight points. Compared to 2018, turnout this year was down in the city and up in the New York suburbs, a di erence that seems to have bene ted Republicans.

Maloney’s missteps

Even so, Maloney might have avoided New York’s red wave, if not for his toe-stomping and unfortunate timing.

In May a special master redrew several New York districts, upending electoral expectations and strategy, and pitting high-pro le Democrats against one another. ey included longtime Reps. Carolyn Maloney and Jerry Nadler in Manhattan as well as in the Hudson Valley, where Maloney’s decision to run in NY-17 e ectively forced Democratic Rep. Mondaire Jones, a popular progressive newcomer, to consider primarying Rep. Jamaal Bowman, a fellow Black progressive in a neighboring district. Alternatively, Jones could have risked primarying Maloney, his own party’s congressional campaign chair, or try his luck elsewhere.

Jones chose the third option, running for an open seat in NY-10, which covers parts of Manhattan and Brooklyn. Centrist Democrat Dan Goldman, an heir to the Levi Strauss fortune, prevailed in that primary, winning with just 25.9% of the vote. Many progressive Democrats resented Maloney for dislodging Jones. After Maloney conceded, Jones tweeted a single word: “yikes.”

Another misstep was Maloney’s e orts to

portray himself as a staunch defender of reproductive freedom. e stance was successful for Rep.-elect Pat Ryan, who won in neighboring NY-19, one of New York Democrats’ few House victories this year. But Maloney had cultivated an image as a moderate who was proud to work with and even endorse Republicans, including those who were hostile to abortion rights—a strategy that may have alienated some progressives.

By contrast, Lawler described himself as “personally pro-life” and claimed he would vote against a federal abortion ban.

Finally, Maloney’s prominence as chair of the DCCC made him a target of the national GOP. Led by the Congressional Leadership Fund, a House GOP super PAC, Republican groups poured $6 million into the race, including $4 million in the nal few weeks. e money went to TV and radio ads hitting Maloney for supporting Democratic “taxing and spending” that “tanked our economy.”

e Republicans’ messaging on the economy also sought to paint Maloney as an out-oftouch elitist. In October he ew to Geneva for a cocktail reception and dinner with Rep. Adam Schi —a decision that looked arrogant to some, given that he was locked in a com-

petitive race back home. Asked how he would ght in ation, Maloney suggested before Election Day that his constituents tighten their belts: “Well, I grew up in a family where if the gas price went up, the food price went down, so by this time of the week we’d be eating Chef Boyardee if that budget wasn’t gonna change. . . . So that’s what families have to do.”

Given these ga es, Maloney’s e orts to portray himself as a ghter who could protect his constituents from the ravening Make America Great Again hordes fell at. His campaign presented the race as a contest between “MAGA Mike” and “Mainstream Maloney.” But as an a uent Democratic Party insider who founded a tech startup and is married to a real estate executive, Maloney didn’t seem terribly relatable. And Lawler, a disciplined candidate who stuck to GOP talking points on in ation and crime and successfully courted police unions and Orthodox Jews, two crucial constituencies in NY-17, didn’t come across as ultra MAGA.

State leans right

While Democrats did better nationally than many predicted, they did poorly in New York state. Rep. Lee Zeldin’s unexpectedly ro-

bust gubernatorial campaign focused on crime, blaming bail reforms that were passed and supported by Democrats for it. e crime narrative a ected down-ballot races as well. Democratic strategists say the message resonated with suburban voters. As one strategist told Crain’s, “How people talked about crime, and the Democrats’ inability to take back that narrative, had a de nite impact.”

Although Zeldin lost, he came closer to the governor’s mansion than any Republican has since George Pataki unseated Mario Cuomo in 1994. Zeldin helped ip Su olk and Nassau counties to red and won Staten Island, where former Democratic Gov. Andrew Cuomo had eked out a 1.5-point victory in 2018. Zeldin dominated Gov. Kathy Hochul by more than 30 points in the borough.

Given New York’s reputation as a liberal bastion, many were shocked that Republicans were able to ip four seats in New York— the most of any state in the country. Whether Democrats can address constituents’ concerns about crime and in ation is part of what will determine their future in the state.

So, too, is the e ectiveness of the state Democratic committee. As Elisa Sumner, former chair of the Dutchess County Democratic Committee, told Crain’s, “When Democrats in red states are outperforming Democrats in New York, there’s a problem with the state party.” ■

MALONEY conceding defeat on Nov. 9 to Mike Lawler (inset)

Luxury condo building near Penn Station starts sales even as redevelopment plan hits a snag

Units in Hiwin Group USA’s project at 300 W. 30th St. start at $950K

BY C. J. HUGHES

Along-awaited plan to redevel op Penn Station was dealt a blow this month when Vor nado Realty Trust said it would pause its project in the neigh borhood. Fees from that project were meant to help pay for improvements to the station, and state officials have vowed the effort will still go forward.

Hiwin Group USA might have bene fited from a major investment in the occasionally rough-edged area. In deed, the week of Nov. 14, the develop er began sales at 300 W. 30th St., a rare new luxury condo in the heart of the district at Eighth Avenue.

But Anthony Hu, the firm’s CEO, says the area has plenty going for it al ready. And besides, its makeover was never going to happen overnight.

“This area is very diverse, very vi brant and very exciting,” Hu said, add ing that the proximity to train lines, Koreatown and tech offices sealed the deal. “I immediately fell in love.”

With 69 studios to two-bedrooms in a glass-walled 16-story tower, No. 300 is a much smaller-scale project than previous luxury condos on the Far West Side. For instance, 15 Hudson Yards has 285 market-rate units across 67 stories. The prices at No. 300 are lower, too, with units starting at $950,000 and an average price so far of $2,000 per square foot.

New condos in Manhattan traded at a slightly higher average of $2,700 per square foot during the third quarter, ac cording to a Corcoran Group analysis.

In a way, No. 300’s prices reflect a dif ferent time. Its pricing was set a year ago, when the building’s offering plan was approved. But the condo was de layed in coming to market by Russia’s invasion of Ukraine, where its cus tom-designed kitchen cabinets were being made. Hiwin ultimately had them manufactured in South Asia instead.

Still, Hu says the prices he set in the fall of 2021 for the apartments were “carefully discussed” at the time, and he sees no need to lower them now to adapt to changing conditions.

The condo, which offers two terrac es, a gym and a second-floor co-work ing space, is Hiwin’s first in Manhat tan. Previously, the firm focused on Queens, including Star Tower LIC, a 25-story, 185-unit condo at 27-14 42nd Road in Long Island City.

Hiwin comes to West 30th Street at a crossroads moment for the neighbor hood. Vornado and other firms were to construct more than 18 million square feet of office space and apartment buildings in partnership with the state. But on a Nov. 1 conference call, Chair man Steven Roth said that economic “headwinds” made him hit the brakes.

Yet a day later, a representative for the state’s economic development agency reaffirmed its commitment to upgrading Penn Station, saying the ef fort “is a long-term project—to be built-out over more than a decade— designed to withstand temporary mar ket adjustments.” ■

308 W. 30TH ST.

The 11-story Art Deco-ish building here opened in 1925 as the Hotel Irvin, a women-only res idence in the spirit of the Hotel Barbizon on the Upper East Side. By the 1950s, No. 308 appears to have abandoned that mission, although “Irvin” is still inscribed over its two front doors. In recent decades, No. 308 had about 60 apartments, roughly half of which were rent-regulated, records show. In 2013, the developer Pinnacle Group decided to con vert the building to condos and expects a $51 million sellout. About 40 of the 60 units were sold by early November, according to proper ty records, but the building also still seems to have an active rental market. Pinnacle, whose founding principal is Joel Wiener, has faced legal problems through the years at other buildings for overcharging tenants and other violations. The firm, whose offices are at near by Penn 1, could not be reached for comment.

306 W. 30TH ST.

A five-story brick-and-brownstone walk-up that was like ly built as a single-family townhouse in the 1800s, this property was functioning as a rooming house—individ ual bedrooms and shared baths—when architect David Turner bought it in 1997, he said. The stoop-fronted and mansard-roofed No. 306 was renovated and has eight conventional apartments today. A two-bedroom, onebath unit marketed at $4,000 per month was the most recent unit to rent there earlier this year. Turner, who has worked in the neighborhood since 1983, also owns 366 W. 30th St., a three-story red-brick Italianate down the block that houses his office. “I didn’t think the neighbor hood was bad when I came here,” he said. “But I think the new condo will do the neighborhood some good.”

389 EIGHTH AVE.

Dive bars have always offered drinks for the pre-game Madison Square Garden crowd along this stretch of Eighth Avenue. Thirty-four-year-old Walter’s Bar, which is open late every day at the base of this four-story tenement-style building, is a decent example. Upstairs are three apartments that in recent years have rented for $3,500 to $4,500 a month. In 1977, an entity called Cretans’ Association Omonoia purchased the 3,900-square-foot structure for about $15,000, records show. The Astoria, Queens-based entity appears to be the local branch of a national group that advocates for preserving Greek culture, in particular of the island of Crete. Greek restaurants reportedly operated in Walter’s retail berth in the 1970s and 1980s. The association could not be reached for comment.

300 W. 30TH ST.

A 69-unit new condo is now in sales mode at this corner site. It was previously occupied by four tenement-style buildings, which at various times had a florist, a shoe-re pair shop and a Subway franchise in their storefronts.

Developer Hiwin Group USA bought the site in one fell swoop in 2018 for $27.5 million, according to property records. Cathay Bank provided $43 million in financing.

Hiwin Group expects a $90 million sellout, according to the offering plan. Once part of the Garment District, the area was later referred to as North Chelsea. But in line with the massive redevelopment expected from Vornado and other builders, some advocates have been toying with a new moniker recently: the Penn District.

403 EIGHTH AVE.

Two attached four-story buildings make up this corner site. Formerly apartment buildings, they were renovated in 2015 as a 33-room hotel, the Midtown West. Its “Hudson Twin” rooms, which are the hotel’s smallest, clock in at about 65 square feet. Guests enter the hotel’s lobby from West 30th Street and take stairs to their rooms. Last year, a storefront on the Eighth Av enue side that once contained a liquor store welcomed Cannabis Culture, a marijuana dis pensary, even as the state’s Office of Cannabis Management continued to hammer out rules about how pot sales should proceed; the office is to award the city’s first retail licenses lat er this month. The site, which technically is a membership club, seems to offer a legal work around in the meantime. A Queens-based com pany called CYMO Trading Corp. bought this property in 1981 for $126,000 and continues to own it today, according to property records.

400

EIGHTH AVE.

This eight-story, 91,200-square-foot prewar office building is controlled by Himmel and Meringoff Properties, a firm based on West 26th Street that does not buy entire proper ties but essentially rents buildings from com panies that continue to own the ground un derneath, an arrangement with tax benefits. In 1981, when Stephen Meringoff ground-leased this site for 99 years, the property’s owners were Sidney Bernstein and Bennett Rose, two major real-estate players who have since died. A limited liability company owns the property today. The New York City Department of Hu man Resources appears to be the building’s main tenant, according to metal plaques on the facade. That facade, which was altered at some point in recent decades, became dan gerously cracked a few years ago. Officials re portedly slapped Himmel and Meringoff with $2,500 in fines in 2018 in response to this.

390 NINTH AVE.

The James A. Farley Post Office, a two-block-sized beaux-arts landmark de signed by McKim, Mead and White, has gradually given itself over to other uses in the past few years. The Moynihan Train Hall, Amtrak’s Manhattan station, opened at the beginning of 2021, and restaurants and shops followed. Last month, Meta, Facebook’s parent company, moved into a 730,000-square-foot multi-floor office portion of the building. Meta is Farley’s sole office tenant. The building’s main landlord, Vornado Realty Trust, owns millions of square feet of real estate in the neighborhood and had been planning to help develop more than 18 million square feet more. But earlier this month, Vornado announced a delay in those plans, which were expected to help pay for Penn Station’s restoration. Madison Square Garden is currently part of the station complex.

State moves to unlock millions more from Medicaid to fund psych hospital stays

New York is poised to un lock hundreds of mil lions of dollars in Medic aid money for stays in psychiatric hospitals and residen tial treatment facilities.

The federal government general ly picks up half the tab for New York’s Medicaid spending, but it does not contribute matched fund ing when it comes to longer-term stays in hospitals or other residen tial programs for mental health conditions and substance use dis orders, which often co-occur. Now the state is requesting authoriza tion from the federal government to use federal dollars for those ser vices.

If its request is approved, the state’s Medicaid coffers would gain nearly $54 million more a year to fund stays lasting an average of up to 30 days, officials said in a public notice. The state projects that about 4,300 New Yorkers across the state will benefit in the first year and more than 6,100 by year five.

The state’s application coincides with rising political pressure on Gov. Kathy Hochul’s administration

to improve care for New Yorkers with serious mental illnesses, par ticularly among the homeless. A Crain’s investigation in September found that systemic failures to prop erly serve this population led to two deaths roughly two decades apart and has left countless others strand ed without the care they need.

Red tape

Ever since Medicaid’s creation in 1965, states have been barred from using federal matching funds for services at Institutions for Mental Diseases—which are hospitals, nursing facilities and other facilities that have more than 16 beds and that primarily treat patients ages 21 to 64 who have a mental disorder, including a substance use disorder.

The rationale behind the exclu sion was that it would discourage states from warehousing the men tally ill in massive and often inhu mane psychiatric hospitals, be cause states would have to shoulder the entire cost. Antipsychotic drugs were also on the rise, enabling doc tors to stabilize and treat patients in their communities

The federal government launched a pathway for states to

obtain waivers from the so-called IMD exclusion in 2018, so they could put federal Medicaid dollars toward certain short-term stays for mental health treatment.

Even without that waiver, states may spend their own Medicaid dol lars on IMD services. But New York has long funded the services with federal dollars using a backchannel route that makes use of the stateand federally-funded monthly pre miums paid out to Medicaid man aged care plans to cover services for enrollees, which includes a large share of the state’s residents who have serious mental illnesses.

BY MAYA KAUFMAN ISTOCK

A source familiar with the work ings of the state’s Medicaid pro gram, who requested anonymity to speak candidly about internal mat ters, said officials were content with that setup until the federal govern ment started probing the spending and insisted that New York submit a formal application to pay for IMD services with its Medicaid funding.

The Health Department did not immediately respond to emailed questions about the audit.

New York’s stated goal for the in creased funding is to ease access to specialized inpatient mental health

services, improve quality and coor dination of care, and reduce emer gency-room usage among New Yorkers with serious mental illness es and substance use disorders.

Looking ahead

“The Institutions for Mental Dis eases amendment is a crucial com ponent of our larger Medicaid vi sion to reinvest in our health care system to increase health equity, improve health outcomes and keep

the Medicaid program affordable for patients,” Department of Health spokesman Cort Ruddy said.

The state would also use the funding for “in-reach services,” such as care management, clinical consultations, peer services and medication management up to 30 days before discharge from a state hospital. About 1,600 New Yorkers with serious mental illnesses would be eligible for those services annu ally, the state said in its request.

■

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BRUCE VAN SAUN Citizens Financial Group

INTERVIEW BY AARON ELSTEIN

Providence, Rhode Island–based Citizens Financial Group recently bought Investors Bank and HSBC’s New York branches for about $4 billion. It is now the 12th-largest bank in the nation with $225 billion in assets.

Citizens’ leader, CEO Bruce Van Saun, is planning to bring to New York the personal touch that made his company successfulin New England and Pennsylvania. As the market anticipates big nancial losses for banks, he explains how to play defense.

Welcome to New York. Your name is on the ballpark of the Philadelphia Phillies, and I wonder if that’s good branding here.

The World Series was good for our brand, and I will add we’re now the of cial bank of the New York Giants, who are good after several tough years. And we’re the of cial bank of the New Jersey Devils, who are off to a ying start. I don’t know if we have the magic touch or not, but those are facts.

The Fed wants to slow the economy, but banks aren’t showing signs of a slowdown. What’s going on? The environment is still pretty good. Our consumer customers all saved a lot of money during the pandemic, their balances are still high, and they all have jobs because unemployment is so low.

DOSSIER

WHO HE IS CEO, Citizens Financial Group

RESIDES Ridgewood, New Jersey EDUCATION Bachelor’s in business administration, Bucknell University; MBA, University of North Carolina at Chapel Hill BIG BUSINESS Van Saun stated at brokerage rm Kidder Peabody and by 32 was CFO of investment bank Wasserstein Perella. He later became CFO at Bank of New York Mellon before joining Citizens in 2013, which he took public a year later. In 2019 named him Banker of the Year.

ACROSS THE POND After the nancial crisis, Van Saun moved to London to help x up the nationalized Royal Bank of Scotland. He returned to the U.S. when RBS spun off Citizens.

FAMILY TIES Van Saun’s family were early settlers of New Jersey. George Washington slept in their home. Van Saun’s grandfather started the commercial real estate practice at Irving Trust, a predecessor of BNY Mellon. A park in Bergen County is named after an ancestor.

How about businesses?

During the pandemic, companies did a lot of good things. They leaned into expenses, got more digital, locked in low-cost nancing, extended debt maturities. Many of our clients are having record years. They grumble about supply chains and labor shortages, saying things

would be even better without those issues. There is no migration to bad credit on the corporate side.

But the market is still expecting big losses for banks, right?

It is. We’re trying to play good defense. We’re a little tighter on credit risk, but we’re still continuing to invest.

Housing seems to be weakening. Does that worry you? You haven’t seen major corrections except in a few places, like maybe Boise, Idaho. Here, things are sideways, maybe down a bit. It’s not a seller’s market like before. Getting equilibrium back to the market is a good thing.

Are ntech rms now cheap enough to buy? They’ve fallen extremely dramatically in value, but I’m not sure you need to buy these folks because banks have the same capabilities. I’m not out hunting.

Is there anything to worry about from the crypto implosions?

I don’t see a big risk to the banking system. Most banks haven’t been able to participate in the crypto world; regulators have been cautious. I think it’ll be a smaller market than people think.

It must be refreshing that Goldman Sachs is walking back from consumer banking.

Everyone in banking saw this coming. It’s a tough business, even if you’re Goldman Sachs and have great people. I give them credit for pivoting. ■

BUCK ENNIS

A cybersecurity storm is brewing in the financial services industry

ABOUT THE AUTHORS

KEVIN RICCI Partner

kricci@citrincooperman.com

The persistent rains of social engineering attacks, where cybercriminals trick us into doing their bidding using techniques such as spear phishing emails, are combining with the gale force winds of data breaches and the destructive and all-too-frequent lightning strikes of ransomware, creating a foreboding and perfect tempest of cybersecurity threats that are rapidly bearing down on the nancial services sector.

With each passing day, cyberattacks are becoming more sophisticated and capable of circumnavigating security defenses with an ever-increasing level of e cacy. Gone are the attacks resulting in small, isolated money grabs and minor production outages. Instead, nancial service organizations are seeing exponentially more devastating impacts, resulting in multimillion-dollar nes, irretrievable data, prolonged disruption of operations and perhaps most important, brand degradation in the eyes of their customers.

Some samples of the catastrophic impact of these attacks:

• Capital One had more than 100 million credit card applications

ALEXANDER REYES

Partner and practice leader, Financial Services areyes@citrincooperman.com

compromised after cybercriminals took advantage of a rewall miscon guration. e attack resulted in nes of $80 million and customer lawsuits of $190 million.

• Experian experienced a data breach that resulted in more than 24 million customer records and nearly 800,000 business records being compromised after an employee was socially engineered into providing access.

• Desjardins, Canada’s largest credit union, was victimized by an insider who gained unauthorized access to millions of member records, causing estimated damages of more than $100 million.

• Flagstar Bank, one of the largest nancial providers in the U.S., was the victim of a massive data breach this year. It was reported that Social Security numbers belonging to 1.5 million customers were compromised in the attack, triggering a series of costly class-action lawsuits.

Should members of the nancial sector feel that they are not the most desired targets of cybercriminals, the consensus of researchers would indicate

otherwise. According to IBM’s “Cost of a Data Breach Report 2022,” nancial organizations experienced the highest percentage of attacks, compounded by having the second-highest average breach costs of almost $6 million. Verizon’s “Data Breach Investigations Report” says the nancial sector experienced more data breaches than any other industry. VMware Carbon Black’s “Cyber Security in Financial Services” report provides another stark assessment of the nancial services industry, saying that it is “subjected to the highest rates of attack of any vertical market, the source of one-third of all data breaches”.

Why are cybercriminals focusing their attacks on the nancial services sector?

ere are several key motivating factors. First, and perhaps foremost to criminals, is the tremendous amount of sensitive information that is stored and processed by businesses in the nancial sector, often for extended periods to meet retention regulations. Second is the accessibility to the nancial assets of customers, many of whom may be high-net-worth or even ultra-high-net-worth individuals. Factor in the industry’s reliance on an intricately connected system of devices, web and mobile ntech applications, and nancial systems and supply chains, some of which adhere to a less-thanoptimal level of security, and it is easy to imagine the multitude of ways that attackers can gain unauthorized access.

While there is no easy path to a secure destination that is invulnerable to cyberattacks, businesses can reduce their risk and increase their ability to avoid becoming the next data breach headline. While there are new and exciting technologies that are leveling the playing eld in the battle against cybercriminals, including

arti cial intelligence, automation and robust security frameworks, there are essential building blocks that every nancial services business should implement. ey include:

• Assessments

Conducting cybersecurity risk assessments on a regular basis will allow businesses to identify where their risks lie so that they can direct remediation resources to where they are needed most. e scope of an assessment should include key third-party vendors, suppliers and other partners. Once an assessment is completed, it is critically important to repeat the process on a regular basis to re ect the constantly evolving threats and changes in technology.

• Awareness

Since the preponderance of attacks are geared toward socially engineering humans, it is critically important to educate all employees on the importance of defending their business against the nefarious schemes of criminals. While training is instrumental to every cybersecurity strategy, testing users with simulated social engineering attacks will arm employees with an instinctual ability to avoid cyberthreats. is approach will convert employees from what is typically the weakest link in the security chain to a virtual human rewall capable of drastically diminishing the chance of a successful cyberattack.

• Resilience

Taking the mindset that a breach is not “a matter of if” but “a matter of when” may seem like a defeatist attitude, but it is, in fact, a constructive one. By preparing for the day when the cybercriminals outmaneuver your defensive e orts, having a plan to respond and recover will slash downtime and the expenses related to returning to operational status. is preparation includes the secure

creation of dependable backups, the development and regular testing of incident response and disaster recovery plans, and the acquisition of a cyber insurance policy.

e cybersecurity challenges facing the nancial services industry are many, with businesses forced to defend themselves from an onslaught of criminals looking to enrich themselves with stolen information and ransom demands.

With a strategic approach that weaves cybersecurity into the ber of every nancial services business, however, the industry can weather the storm and reach for a brighter tomorrow.

For more information on securing your nancial services business, contact Kevin Ricci at kricci@citrincooperman.com or Alexander Reyes at areyes@ citrincooperman.com.

“Citrin Cooperman” is the brand under which Citrin Cooperman & Company LLP, a licensed independent CPA rm, and Citrin Cooperman Advisors LLC serve clients’ business needs. e two rms operate as separate legal entities in an alternative practice structure. Citrin Cooperman is an independent member of Moore North America, which is itself a regional member of Moore Global Network Limited.alternative practice structure. Citrin Cooperman is an independent member of Moore North America, which is itself a regional member of Moore Global Network Limited.

It’s nally here! Citrin Cooperman is excited to announce the launch of our new website— bringing you an innovative, industry-focused experience with exclusive content tailored to your needs. Access the future today at citrincooperman.com.

With local casinos, state should ensure most gaming proceeds ow to education

Hopes for a New York City casino have set o a frenzy among well-heeled local developers and Las Vegas gaming behemoths including Caesars, MGM and Wynn. ey’re lining up to partner and pitch sites from Times Square to Hudson Yards, Queens to Brooklyn, for three up-for-grabs gaming licenses, two of which will likely go to existing racinos.

State legislators and Gov. Kathy Hochul have gone all-in on casinos as tax-revenue generators and are expected to grant the licenses next year. e three winners are expected to pay at least $500 million each, plowing $1.5 billion into state co ers.

windfall like a Powerball winner.

State law calls for 80% of tax revenue from licensed casinos to be earmarked for the state’s education budget, but the law also leaves open the option to use the money for “real property tax relief,” as James O’Donnell reports in the Crain’s Forum on casinos this week (page 15). e state should not be tempted to spend those proceeds outside of schools.

president & ceo K.C. Crain group publisher Jim Kirk publisher/executive editor Frederick P. Gabriel Jr.

EDITORIAL

editor-in-chief Cory Schouten, cory.schouten@crainsnewyork.com managing editor Telisha Bryan assistant managing editors Anne Michaud, Amanda Glodowski director of audience and engagement Elizabeth Couch audience engagement editor Jennifer Samuels digital editor Taylor Nakagawa art director Carolyn McClain photographer Buck Ennis senior reporters Cara Eisenpress, Aaron Elstein, Eddie Small reporters Maya Kaufman, Jacqueline Neber, Natalie Sachmechi, Jasmine Sheena, Caroline Spivack op-ed editor Jan Parr, opinion@crainsnewyork.com sales assistant Ryan Call to contact the newsroom: editors@crainsnewyork.com www.crainsnewyork.com/staff 685 Third Ave., New York, NY 10017-4024

ADVERTISING

But the state’s haul from there is no sure bet and will depend on just how big the “house” wins at the new casinos. at’s why it’s essential for the state to commit to investing the lion’s share of gaming proceeds into education and avoid squandering the

REVENUE SUPPORT TEACHERS AND STUDENTS

“It is essential that this revenue support teachers and students, as intended, and not be used to cut taxes for homeowners,” said Nathan Gusdorf, executive director of the Fiscal Policy Institute. “Additionally, our schools’ operating expenses must be supported by sustainable, recurring revenue, not one-time windfalls.”

Gaming represents a small slice of the state’s schools funding and likely will remain so. Four existing

upstate casinos contributed about $130 million toward the education budget in the most recent scal year, about 0.33% of the $39.5 billion total. e city’s two racinos, Empire City at Yonkers Raceway and Resorts World Casino in Queens, contributed an additional $566 million.

It’s unclear how much more tax revenue three full casinos in the city would generate, though

analysts note that as more open, they’re ghting for a smaller share of the gaming pie. ey’re also competing with virtual options, including online sports books. At the upstate casinos, gaming revenues popped initially but leveled o as the market matured. is is all the more reason the state must spend its gaming proceeds wisely: to invest in our future. ■

ISTOCK

OP-ED

New ruling will harm the life insurance industry and those purchasing policies

BY GARY SVIRSKY AND JANINE PANCHOK-BERRY

New York’s Court of Appeals recently sided with the state’s nancial regulator by upholding a rule that will shrink the life insurance market. e rule assumes consumers cannot think for themselves when purchasing life insurance and annuities. To “help” them, the Department of Financial Services imposed a best-interest standard on transactions, e ectively turning insurers, agents and brokers into  duciaries.

But these market participants neither act as investment advisers when they sell policies and annuities nor exhibit the special loyalty characteristic of duciaries. Agents and brokers in other industries are typically not considered duciaries. So it is not surprising that a few years ago a federal appeals court struck down similar rules that the U.S. Department of Labor imposed on sellers of individual retirement accounts and Employee Retire-

ment Income Security Act investments.

e new rule—known as Regulation 187—tries to address the Financial Services Department’s concern that “producers and insurers” might recommend transactions that prioritized their own compensation over the consumer’s best interest. But the department presented no facts in its regulatory or court lings that evidenced this problem. It also did not show that the rule would bene t consumers.

What’s worse, the standard for violating the rule is vague: It does not clearly de ne “best interest.” An insurer or agent might violate the rule if the annuity or policy is not “suitable” for the consumer, whatever that means. Regulation 187 also requires insurers to supervise agents and brokers to ensure they comply with this best-interest standard. But insurers have little control over independent brokers and agents.

Regulation 187’s arbitrary application to in-person sales creates more confusion. Given the prolifer-

ation of online and TV insurance sales pitches, it misses many New Yorkers. It also bogs down direct agents and brokers with regulatory burdens that their electronic and TV competitors do not have.

Ironically, the regulation’s unintended consequences will hurt consumers.  e pandemic focused consumers on nancial security, leading to a boom in life insurance sales across the nation—but not in New York. According to the Life Insurance Market Research Association, New York saw the smallest growth in life insurance sales during the pandemic.  at’s because many market participants preemptively changed their practices, despite the Department of Financial Services’ staying enforcement during the litigation.

What’s next

What’s next for Regulation 187?  e court challenge here was limited to “facial” constitutional review.  Because courts are reluctant to strike down laws in the abstract,

this made it easier for the Department of Financial Services to prevail. Likely, there will be more fact-speci c litigation after the department starts enforcement.

e state Legislature has introduced bills to address some of the regulation’s failings by creating a safe harbor for term-life policies under $1 million. Exempting these straightforward products may save this portion of the market.

e Department of Financial Services may address some evil— real or imagined—so long as it does not exceed its statutory authority. But it may not legislate through the back door. New York has been viewed as a model for the nancial and insurance industries. But how long will that image last if courts allow such administrative ats? ■

Gary Svirsky, a partner in O’Melveny and Myers’ New York o ce, sits on the New York City Bar Insurance Law Committee. Janine Panchok-Berry is counsel in O’Melveny’s New York o ce.

www.crainsnewyork.com/advertise sales director Laura Lubrano laura.lubrano@crainsnewyork.com senior vice president of sales Susan Jacobs account executives Kelly Maier, Marc Rebucci, Philip Redgate, Laura Warren people on the move manager Debora Stein, dstein@crain.com

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chairman Keith E. Crain vice chairman Mary Kay Crain president & ceo K.C. Crain senior executive vice president Chris Crain editor-in-chief emeritus Rance Crain chief nancial of cer Robert Recchia founder G.D. Crain Jr. [1885-1973] chairman Mrs. G.D. Crain Jr. [1911-1996]

“IT IS ESSENTIAL THAT THIS

MTA needs to boost efficiency to close deficit

BY ANDREW REIN

Amid concerns about safety, service and ridership, the Metropolitan Transporta tion Authority has a huge structural operating budget deficit. Its recur ring annual expenses are at least $2.5 billion more than its revenues.

Federal Covid aid that has filled this gap temporarily will soon run dry.

Though much discussion focuses on lower ridership depressing fare revenue, recall that the MTA had a prepandemic structural deficit of roughly $750 million, which was widened by eliminating the 2021 subway fare increase. The MTA is not merely a victim of circumstance; its structural deficit also is due to its

for service expansions, or the tens of billions of additional dollars for state-of-good-repair work likely to be included in the 2025-29 capital plan.

Some good news

The good news is that solutions that do not sacrifice service or com promise competitiveness exist. In creasing efficiency should be a sig nificant portion of the MTA’s gap-closing actions. The MTA bud get includes a $100 million efficien cy plan, which would close just 4% of its gap. Much more is needed.

The Citizens Budget Commis sion identified billions of dollars in potential savings from adopting op erating strategies common to other public transit sys tems and aligning costs with industry benchmarks.

THERE IS No mAGIC moNeY Tree THAT GROWS reSoUrCeS

high costs, partly from operating dif ferently than other transit systems.

The MTA also needs more than $35 billion in capital investment in the next few years just to bring its tracks, cars and signals up to, and keep them in, a state of good repair. Absent these investments, service will start to break down.

This eye-popping amount does not even include the many wished-

Nearly all other subways use one-person train operation, and commuter trains use conductor spot checks rather than checking every ticket. Also, national data shows that the productivity of New York City Transit subway facility maintenance work is 44% lower than the national median.

Implementing structural changes such as these are not easy and will require a multiyear, all-hands-con tributing approach. The efficiency

push should start as soon as possible, with changes that can be achieved by actions of the MTA’s leadership alone.

But the greatest savings are possible only with changes to labor contracts. The MTA’s leadership and labor unions should work together, using the collec tive wisdom of manage ment and workers, to iden tify and phase in efficiency reforms. These could nar row the structural gap, sup port raises workers deserve, likely involve gainsharing, and preserve services criti cal to New Yorkers’ liveli hoods and quality of life.

The MTA is smartly con sidering using federal aid to reduce its recurring debt service costs, but that accelerates the fiscal cliff to next year. Most of the discus sion on closing the structural gap has focused on getting more money from taxpayers. There is no magic money tree that grows resources free of consequences. New reve nues or subsidies should be sought only with great care to identify trade-offs and impacts.

State of good repair

The MTA’s strength also depends on making significant capital in vestments to bring and keep its cur

rent assets in a state of good repair. Congestion pricing remains criti cal. It should be implemented ex peditiously, and revenues should not be diverted to narrow the oper ating budget gap.

Our research found that the MTA’s recent success at increasing the capital contracting and delivery speed still will leave more than $25 billion in planned projects out standing at the end of 2024. To en sure the system functions reliably, the MTA should keep laser-focused on increasing its capital project throughput, use techniques such as

Fastrack closures to facilitate re pairs and upgrades, and prioritize the state of good repair before ex pansion projects.

Ensuring a strong future for the MTA relies on all New Yorkers: its employees; riders, who should pay reasonable fares that increase with costs; drivers, who pay tolls, includ ing congestion pricing; taxpayers, who already support the system; and elected officials willing to make the hard choices for our future. ■

OP-ED BY ELLIS VERDI

New Yorkers need to be sold on New York

It started with Covid. But now that the streets are dirtier, hate crimes are rising, the rat popula tion is booming, and subway crime is spiking, New Yorkers are at a crossroads—and many are taking the one that leads out of town.

Last year the city’s population dropped by more than 300,000— the equivalent of Harlem and Washington Heights clearing out completely.

One New Yorker leaving the city means two fewer subway rides a day, one less cup of coffee bought at the corner, one less lunch at the deli

litical campaigns, but something needs to be done right now to stanch this exodus. Something that points out to New Yorkers why they’re here in the first place. New Yorkers need to be sold on New York.

A new message

Nearly 50 years ago, the state’s famed “I Love NY” campaign show cased the beauty and allure of the state (and city) to those without a New York accent. It worked. And to day, the city needs its own ads, ban ners, social media posts, digital re minders and everything else in the marketing quiver to target those living here with a message that they’re here be cause of shared val ues.

and one less desk at the office, to name just a few of the trickle-down effects. So as the winter months near, we’re bound to see even great er numbers leave us for Florida or other locales.

Yes, we need safer streets, afford able housing and all the other things that are promised during po

They’re here be cause New York’s rough edges sharp en their life’s experiences. They’re here because the fabric of the city is woven from so many diverse, defi ant and determined threads. And nothing can convey this more effec tively than a smart, creative effort that truly reminds New Yorkers why they love this city and why they be long here.

As a New York ad man for 30 years working for quintessential New York clients, I agree with the research that shows what values New Yorkers cherish most about the city: inclusion, tolerance, diver sity, “straight talk,” authentic neigh borhoods and a toughness that, ironically, encourages civility. These are the values that connect New Yorkers to New York.

This certainly isn’t St. Louis, and Los Angeles doesn’t come close. New Yorkers need to be reminded where, exactly, they live. Maybe it’s an ad that conveys a reassuring feeling that your neighbors don’t love AK-47s, or that gay marriage, marijuana and abortion are legal here, or quite simply point out how no other city in the world comes close to the cosmopolitan makeup of this town.

Looking for answers

The city faces an existential crisis in losing people, businesses and a bit of the mystique that has made it so appealing. So as the Adams ad ministration sets out to change the perception that the city isn’t head ed back to the 1970s, work must be done today to provide those an swers when people start to ques tion why they live here. A visible

campaign will provide the air cover for the administration as it attacks the real causes of concern. I’m not suggesting this be another city-fi nanced effort; it demands the in volvement of businesses to step up and champion this city with “I Love NY 2.0.”

Battling this abandonment re quires selling New Yorkers on the truth about the city—the real rea sons that connect them to New

York. The city attracts a certain spir it, one drawn to a way of life that is becoming increasingly threatened outside these five boroughs. And without a creative effort to stem this diaspora of New Yorkers, we’ll be hurtling back to the bad old days of the ’70s in a New York minute. ■

Ellis Verdi is president of DeVitoVerdi, an ad agency based in the city.

Andrew Rein is president of the Citizens Budget Commission.

MARC A. HERMANN / MTA NEW YORK CITY TRANSIT

PEOPLE ON THE MOVE

ENERGY / UTILITIES

Filco Carting

Longtime waste management entrepreneur and founder of Recycle Track Systems(RTS), Adam Pasquale, will join Filco Carting as Executive Vice President, Strategy and Corporate Development, working directly with Filco’s CEO, Domenic Monopoli. As part of his responsibilities with Filco, Pasquale will partner with Monopoli to further advance Filco’s commitment to a Zero Waste future. Pasquale and Monopoli will partner to expand Filco’s scalable and sustainable solutions for customers and communities.

HEALTH CARE

UnitedHealthcare

UnitedHealthcare has named Junior Harewood as CEO, UnitedHealthcare of New York, Employer and Individual plans. An employee of UnitedHealthcare for 25 years, Junior’s expertise in commercial bene ts, along with the relationships he’s built throughout his tenure, will be an asset to the New York Health Plan as it continues to provide its customers and members with affordable, innovative, and quality healthcare plans. Junior is a native Long Islander with an Executive MBA from UGA.

LAW

Tarter Krinsky & Drogin

Tarter Krinsky & Drogin’s Sean T. Scuderi has been elevated to Vice Chair of the Construction Practice. Scuderi will expand his responsibilities in this new role to focus on departmental delivery of client service, practice management, strategic planning, communications, staf ng, and overall practice group performance. Scuderi represents clients through every phase of the design and construction process from negotiating construction agreements to handling complex disputes.

REAL ESTATE

Paramount Vista National Land Services LLC

Paramount Vista National Land Services LLC, a full-service, minorityowned title insurance agency, is pleased to welcome Dennis Ju as its Executive Vice President of Sales. A seasoned professional with 20 years of experience, Mr. Ju will oversee revenue operations and provide industry insights and innovative solutions to clients. As a member of the leadership team, he will play a key role in helping to execute short and long term growth strategies and work on making inroads in new markets.

TRANSPORTATION

New York & Atlantic Railway

LAW

Patricia Adams and Joo Hyun Lee have joined Vinson & Elkins in New York as partners in the Executive Compensation practice. The duo advise clients on a wide range of compensation and employee bene ts arrangements, particularly with regard to issues arising in private equity, M&A, securities offerings and restructuring matters.

LAW Foley Hoag

Foley Hoag LLP announced that legal industry veteran Diane Schef er has joined the rm as Chief Operating Of cer. Schef er has more than 30 years of experience in law rm management and consulting. She previously held top Finance and Operations roles at several AmLaw 200 rms. She earned a B.S. degree in Economics from the Wharton School of Business, University of Pennsylvania and an M.B.A. degree in Finance from the Stern School of Business, New York University.

Patricia previously advised on transactions including Blackstone in its acquisitions of Clarus and Harvest Funds, and KKR in its acquisitions of PetVet Care Centers and Heartland Dental. Joo’s previous client work includes advising one of the largest independent ber infrastructure bandwidth companies in its acquisition of a telecom service provider, and a major REIT in its acquisition of a luxury hotel/casino.

New York & Atlantic Railway has named John Gleeson as Director of Sales and Marketing. Gleeson comes to NYA with 20 years of experience on the customer side of the railroad industry. Most recently he developed rail facilities at Arizona Beverages USA. Previously, Gleeson managed tank-car eets for Illinois-based Old World Industries and later supervised transportation services for railcar lessor GATX Corp. A native of Chicago, Gleeson has a B.A. in communication from Loyola University, Chicago.

York, NY

The Hoffman Group has joined global business advisory rm EisnerAmper. Founded in 2017, and based in Baltimore, The Hoffman Group is a full-service accounting and business consulting rm that serves industries such as construction, manufacturing, wholesale distribution, government contracting, technology and real estate. The Hoffman Group gives EisnerAmper a key presence in the all-important Maryland-Washington-Virginia corridor.

Vinson & Elkins LLP

Adams Lee

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CASINOS

TWO CASINO LICENSES are expected to go to established sites in Yonkers and near JFK Airport. A group of developers and casino operators are jockeying for the third.

BY AARON ELSTEIN

In 2019 top Las Vegas executives gathered around a table in Albany. ey didn’t come to play craps or poker but to remind state lawmakers they would be pleased to invest in New York City whenever the door opened.

“A guy from Las Vegas Sands said he’d pay almost $1 billion for a license in New York City upfront and right now, even though he knew he couldn’t get it for four years,” recalled state Sen. Joseph Addabbo, a Queens Democrat.

Restraint was built into the 2013 law that brought casino gambling to the state. Under the statute, four edgling upstate casinos got a head start of seven years before New York could think about licensing any casino downstate.

But last year, one year early, lawmakers concluded building casinos in New York City sooner would accomplish two things: e state would get a big wad of cash, and thousands of union jobs would be created. So the licensing process for three downstate casinos was accelerated. Starting in January, a dozen or more developers could bid for the power to run the city’s rst full-service casino as soon as 2024.

“It’s the holy grail,” said Nick Antenucci, a gaming lobbyist and senior counsel at Davido Hutcher & Citron. Wherever it lands, a New York casino is “the largest land-based gaming opportunity in years,” CBRE senior analyst John DeCree wrote in April. e nancial estimates are real, and they’re spectacular: A casino in the ve boroughs could generate $2

billion in yearly revenue and $600 million in operating earnings, CBRE said, and deliver a 20% annual pretax return after $3 billion in licensing and construction costs.

No wonder New York casino licenses are as sought after as Willy Wonka’s golden tickets.

Bidding for one of the three downstate casino licenses starts at $500 million, or more than four times higher than in downtown Chicago, according to Fitch Ratings. But bids could come in higher because, three years after a Las Vegas executive put in a nearly $1 billion ante for a license, the gambling business has gotten only better. Taxable gross revenue in Las Vegas in

DAVID JUNKIN

Downstate casinos would be good for New York. Here’s why

SARAH GRADY

LUCY

the most recent fiscal year was 25% higher than in 2019.

It’s understood that two of the three downstate licenses are likely going to the racinos—racetracks with slot machines— in Yonkers and at Aqueduct in Queens. If the Empire City Casino in Yonkers could also offer table games and sports betting, CBRE said, revenue would quickly double 2019’s $600 million. The Resorts World New York City Casino at Aqueduct gener ated about $850 million in gross gaming revenue last year, the most of any casino outside Nevada, the American Gaming As sociation said. Not only are the racinos successful, but they also already have a re lationship with the gaming commission, said gambling.com analyst Lou Monaco.

Titans in the city’s real estate industry have spent the past year forming alliances with gaming companies in an effort to se cure the final license. Office landlords The Related Cos., SL Green Realty and Vornado Realty Trust have teamed up or are ru mored to be partnering with Las Vegas op erators to bid for casinos in Hudson Yards, Times Square and Herald Square, respec tively. Billionaire Mets owner Steve Cohen reportedly wants a casino near Citi Field and is believed to favor Hard Rock for a partnership, while developer Joe Sitt of Thor Equities has set aside land he owns on Coney Island. Developers of sites near the Staten Island Ferry Terminal and Bel mont Park are also expected to throw their

the biggest attraction in that borough ever, and Mayor [Eric] Adams is looking for a leg acy project,” a proponent said.

Addabbo, chairman of the state Senate racing, gaming and wagering committee, said the state’s choice of location comes down to putting a casino where people are or where you want them to go.

“There are two theories about that,” he said, “at least.”

A split business community

Would a casino be good for business in Midtown? The business community is split on that question.

Caroline Hirsch, owner of Caroline’s on Broadway, said crowds are down 30% at her comedy club. She supports a casino to lure visitors back to Times Square.

“If there’s a better idea, I’d like to hear it,” Hirsch said.

But some including the Broadway League, which represents theater owners, operators and producers, oppose the plan. A casino would “overwhelm the already densely congested area and would jeopar dize the entire neighborhood, whose exis tence is dependent on the success of Broadway,” it says.

On the other hand, the Actors’ Equity Association, which represents Broadway performers, says gaming would be a “game changer” and supports SL Green’s bid to develop Caesars Palace Times Square.

The Times Square Alliance, which rep resents the business interests of the Times Square neighborhood, isn’t publicly taking a stance on whether a casino in that area is a good move, its chief executive, Tom Har ris, said.

A spokesperson for the Durst Organization, which owns several buildings in Midtown, said its of fice tenants have expressed con cerns over the compatibility of a casino and the operation of their businesses.

will be subject to the city’s uniform land-use review procedure. That gets the City Council involved and is how concessions or finan cial contributions are extracted from devel opers in exchange for a community’s sup port. Developments on state-owned land could avoid the review procedure, and if they do, racinos would be positioned to become full-service casinos more quickly than others.

“Speed to market is always an advan tage,” said Antenucci, the gaming lobbyist.

hats in the gambling ring.

In addition to picking an operator, the state needs to decide whether its top prior ity is helping Midtown or an outer borough. If revenue-maximization is the goal, then it would be wise to mimic the racino at Aqueduct. With its 6,500 slot machines and a 28-by-16-foot TV screen said to be the largest in Queens, the casino is successful in part because it’s isolated from the rest of the city and customers have literally no where else to go.

“A casino in the outer boroughs would be

A few blocks to the east and south, the Water Club has pitched a possible site along the East River. The bid is “vehemently opposed” by Community Board 6, Chairman Kyle Athayde said.

“The high rollers that the Water Club is targeting will not benefit the retail or com mercial establishments in the area,” the community board said in an April resolu tion to the state Gaming Commission.

These disagreements could matter a lot because, under the law, casino bidders must demonstrate evidence of community support, and zoning approval is required.

A wild card is whether casino bidders

The advantage, wherever a casino lands, goes to the hotel workers union.

Because neither business nor interna tional travelers have returned in large numbers, 15,000 city hotel workers, or 28% of the workforce, haven’t returned to their jobs, according to figures from Oxford Eco nomics. Rich Maroko, who succeeded longtime boss Peter Ward as head of the Hotel Trades Council in 2020, figures casi nos are the future for his 40,000 members, and last year he renamed the organization the Hotel and Gaming Trades Council.

“We wanted the name to reflect the real ity of who we are and who we could be,” Maroko said.

About one-tenth of his members work in casinos, and each new facility promises at least 1,000 additional jobs paying $38 an hour, plus benefits and a pension. The ho tel workers union was the first union to en dorse Eric Adams for mayor and ensured that the new casinos will employ organized labor. The law hastening their arrival di rects New York gaming officials to award points to bidders who have union agree ments and detailed plans for “assuring la bor harmony.”

You gaming? I-gaming

Now that a Big Apple casino is no longer off the table, other markets will respond to protect their turf. New Jersey could open casinos outside Atlantic City to compete with Manhattan. And the casino operators that worked so hard to land here could be disrupted by mobile poker and blackjack coming to New Yorkers’ phones.

I-gaming, as it’s known, is already legal in New Jersey and Pennsylvania, and pro

BUCK ENNIS

“A CASINO IN THE OUTER BOROUGHS WOULD BE THE BIGGEST ATTRACTION IN THAT BOROUGH EVER”

ponents say New York must follow so tax revenue doesn’t leak out.

It was the same argument used to ad vance mobile sports betting, which be came legal in New York early this year and has generated $500 million in revenue for the state through September, according to data compiled by the Urban Institute. The costs of this revenue, in terms of gambling losses and addiction rates, are still to be tallied.

“I hope i-gaming is part of budget talks next spring,” Addabbo said. “And certainly

l Where casino licenses are likely to be awarded l Proposed locations

we would need resources for those who get addicted.”

What else could be next? Maybe more casinos. Even after the three open, New York would have just one “gaming posi tion” per every 896 people, CBRE said. Boston has one for every 691, and Phila delphia ,one for every 477.

In other words, CBRE wrote, New York could “still be potentially underserved.” ■

Natalie Sachmechi contributed reporting to this story.

Casino licenses are no sure bet for state’s coffers

BY JAMES O’DONNELL

Three new casino licenses being awarded by the state will soon bring the razzle-dazzle of live ta ble games, such as poker and blackjack, and in-person sports betting to the city. But supporters and lobbyists promise the licenses will bring something else too: a windfall of tax revenue for the state.

Four casinos have been operating up state since 2018, but the new licenses will mark the first opportunity for casino oper ators in the city, in West chester County and on Long Island to open fully licensed facilities. Lawmakers have gone all-in on supporting casinos as tax revenue gen erators, with state Sen. Jo seph Addabbo Jr. calling the licenses “a win for New York state and the local commu nities where these licenses will go.” Gov. Kathy Hochul fast-tracked the process to start sooner than originally planned and licenses are expected to be awarded next year.

But a range of experts, from tax policy analysts to gambling addiction coun selors, say the benefits are not as clear-cut as lawmak ers imply.

How the winnings are paid out

The winners of the bid ding process will ultimately have to pay $500 million each for the licenses, bringing in $1.5 bil lion for the state. But after that windfall, the state’s winnings will depend on how the casinos perform.

Depending on location and games, gamblers bet between $150 million and more than $800 million a month at New York’s casinos. After payouts, fully li censed facilities are typically taxed around 30% of net slot machine revenues and 10% of net table game revenues for a total tax rate between 30% and 40%.

According to the law, 80% of tax reve nue from licensed casinos is earmarked for the state's education budget. An addi tional 10% is split equally between the ca sino’s home county and the home munic ipality, and the remaining 10% is distributed to nearby towns on a per-cap ita basis.

For the state’s last fiscal year, which ended in March, the four upstate casinos contributed about $163 million in tax rev enue, meaning about $130 million went toward the education budget. With the state’s total education budget at $39.5 bil lion, the funds represented about 0.33% of

the total.

But supporters say the population den sity of the city will mean significantly higher figures. Two of the three licenses are expected to go to existing gambling lo cations that have only video-gaming li censes: Empire City at Yonkers Raceway and Resorts World Casino in Queens.

Those two facilities contributed $566 million to education in fiscal 2022, about 1.43% of the budget. In total, the state’s nine video-gaming facilities contributed $972 million in tax revenue earmarked for the education budget.

It’s difficult to estimate how much revenues will rise at Empire City and Resorts World if the two casinos ob tain full licenses, but Tioga Downs outside of Bingham ton offers evidence of a bump. The casino operated without a table license until 2016, and its generated tax revenue hovered between $17 million and $23 million annually. When it began op erating with a full license in 2018, those figures rose to $29 million in 2021.

Schools or tax cuts

When selling the idea to community members, which are encouraged to weigh in on the location of the casi nos, lawmakers and sup porters praise the fact 80% of the tax revenue will go to ward education. But the law also provides another outlet for those funds. The money can also be used for “real property tax relief,” according to the law, and it’s not clear what portion of the $131 million raised by upstate casinos in the last fiscal year have gone toward which purpose.

To Nathan Gusdorf, executive director of Fiscal Policy Institute, the impact of the revenue from the new casinos will depend entirely on whether the earmarked funds are actually put toward education.

“It is essential that this revenue support teachers and students, as intended, and not be used to cut taxes for homeowners,” he said. “Additionally, our schools’ operat ing expenses must be supported by sus tainable, recurring revenue, not one-time windfalls.”

The bulk of tax revenues goes toward education, Addabbo said, but the lawmak er could not provide a specific figure of how much. “The money is going towards education and not towards the alterna tive,” he said. “It’s now supplementing an education budget that’s increasing every year.”

POTENTIAL LOCATIONS FOR THE NEW CASINO LICENSES SPAN THE FIVE BOROUGHS

CASINOS

With more outlets for gambling, Dadayan said there shouldn’t be an expectation for long-term growth once the downstate licenses are awarded.

While the state’s education budget was cut in scal 2020-21, it rose 13.6% from last year to $44.9 billion in the latest budget.

A ash in the pan

While three new licenses will certainly bring new gambling tra c to the Big Apple, Lucy Dadayan, senior research associate at Urban-Brookings Tax Policy Center at the Urban Institute, said the windfalls of new casinos tend to be short term.

“Whenever you open a new casino, you usually of course get some revenues, but the growth over time is not enough to keep up,” she said.

States began rapidly opening commercial casinos after the Great Recession as a way to ll co ers. But over time, Dadayan said, most have found it hasn’t paid o . Average tax revenues from the four upstate casinos has been $14.3 million per month so far this year, below the peak of $15.7 million in 2019.

With more and more opportunities to gamble, each casino is ghting for a smaller share of the pie. at’s worsened with the rise of virtual gambling options, mobile sports betting among them.

State-licensed casinos are not the only options for slots and table games in the state. New York hosts 12 tribal gaming casinos operated by various indigenous groups, and another, the Shinnecock Casino Hamptons, is under construction in Southampton. ese casinos negotiate di erent tax rates, but the rates are lower than state-licensed facilities. Tribal gaming casinos aren’t required to publicly report their revenues and tax payments to the state’s website.

“It’s the novelty of it in the beginning. Once the novelty wears o , it’s too much competition,” Dadayan said.

A risky bet

Brandy Richards, team leader at the Northeast Problem Gambling Resource Center, said any rise in revenue means a rise in the number of gamblers seeking help for addiction. New casinos present unique risks—experts say casinos are seen as a place for “escape” gambling, more so than sports betting or the lottery.

“It may start out as something recreational, but at some point it transitions,” she said. “Eventually they’re using that as an unhealthy means of coping with some of the other life stressors that are going on.”

e law governing licenses requires that casinos deposit $500 annually for every approved slot machine or table, and those funds are required to be used exclusively for problem-gambling treatments. Addabbo co-sponsored a bill in June that would create a council to recommend how that money, about $2.83 million annually, be spent. e Assembly and the state Senate have passed the bill, but it has not yet been delivered to Hochul’s desk.

Richards has ideas on the best uses for that funding. She said organizations such as hers need more money to hire peer counselors, start education programs in schools and operate a 24/7 call line.

“We get people calling in the middle of the night who are in a casino and have reached that moment where they need help,” she said. “ ey can leave messages on our machine, but we need to reach people at that moment.” ■

AS THE CITY FACES DECLINES in commercial property taxes and tourism dollars, casinos might seem like an attractive expansion for the city’s tax base. But casinos are not just any kind of entertainment. Although operated by businesses and taxed by states, they can create costs that are paid by all taxpayers, not just by gamblers.

Supporters argue that casinos promote local economic development, create jobs and provide a voluntary expansion of entertainment options. But casinos can lead to higher crime and bankruptcy rates in a local community as well as addiction among some gamblers. The jobs they create may not include useful or transferable workforce skills that can be applied elsewhere.

Clearly some of the arguments made by proponents and opponents can be true, and gambling isn’t the only legal activity with negative externalities. Communities, however, need to gure out if the bene ts outweigh the costs.

Before 1990 casinos were legal only in Nevada and New Jersey. In the past three decades, about two dozen more states have joined the casino club. But this large-scale expansion across America did not lead to large increases in revenues from casinos. The average annual growth rate for casino tax revenues for the nation was only 0.2% in in ation-adjusted terms between scal 2014 and scal 2019. By comparison, the average annual growth for total state tax revenues was 2.5% for the same period. Clearly other forms of tax revenues have seen stronger growth over the same time.

In scal 2010 tax revenues from casinos represented more than 5% of total state tax revenues in six states: Delaware, Indiana, Louisiana, Nevada, Rhode Island and West Virginia. As of scal 2021, Nevada, the destination hub for casino entertainment and home to about 60% of all casinos in the nation, was the only state where casino tax revenues made up more than 5% of the total state tax revenue.

All other states saw continuous declines. In other words, history indicates that revenues generated from casinos are often short-lived and not sustainable in the long run.

Earlier this year of cials in New York approved the opening of three full-service casinos downstate. Casino industry giants are considering new locations in Times Square or Hudson Yards. The city is a tourism hub, but whether a location makes sense depends on whether going to a casino would be a substitute for or complement to existing entertainment options, including the two casinos already operating in the city. A new casino in Manhattan could take business away from other entertainment activities, particularly Broadway theaters, which are still scrambling from the consequences of the pandemic.

It’s often the case that interest-group lobbying plays a signi cant role in politics. It will be important, however, for state and local of cials to consider not only the economic and scal bene ts of new casino tax revenues, but also the possible social and economic costs for New Yorkers and the impact on other businesses. The potential costs might outweigh the bene ts, especially given the possible substitution impact on other entertainment venues. The history of casino revenues indicates that they may generate funds in the short term, but they will not make a dent in efforts to balance education or health care budgets. ■

LUCY DADAYAN

OP-ED HERE’S WHY DOWNSTATE CASINOS WOULD BE GOOD FOR NEW YORK

ANY COMMUNITY CONTEMPLATING the arrival of a new business venture has questions.

Will this business create jobs, taxes, traffic, crime?

Will it compete with neighboring businesses?

Will its arrival create lasting positive change for the host community?

The arrival of a new casino is no different.

Like countless industries that have made their home in the tristate area, the casino industry comes with a lengthy résumé, including a history of operation, in a variety of forms, across the region with arguably variable degrees of success over time.

In answering the above questions, we might say: jobs, yes; taxes, yes; traffic, yes; crime, it’s complicated, but there’s likely no more crime than what’s related to any other type of tourism activity.

Will it compete with gaming and nongaming businesses locally and regionally? Yes, but maybe that’s a good thing. Will it create lasting positive change? Yes, if done right.

The first few questions have been discussed at length by a variety of sources. Therefore, I will weigh in on the latter two.

Any new casino entering the mid-Atlantic region, let alone downstate New York, will face steep competition from gaming and nongaming operations as all vie for consumer attention and spending. They will be challenged to offer a high-quality, distinctive product that earns its place with consumers.

Existing operators regionally have already heard this call, responding in a quiet (and not so quiet) race to diversify their gaming products (sportsbooks, online casinos) and add nongaming amenities (restaurants, conference and live performance venues, and retail offerings).

Although established gaming locations in downstate New York may have an advantage in speed to market and brand recognition in opening full casino

operations, they—like their new counterparts—will need to develop and enhance all aspects of their on-property services and amenities to compete locally and regionally.

When done thoughtfully and with an eye to future innovation, the development and enhancement of these businesses can have a meaningful and lasting impact on the host community in the creation of sustainable, well-paying jobs and the generation of taxes from a variety of revenue streams. ■

Sarah Grady is assistant director of Stockton University’s Lloyd D. Levenson Institute of Gaming, Hospitality and Tourism.

SARAH GRADY ADVERTISEMENT

ABNY CEO Melva Miller leads by broadening organization’s reach

INTERVIEW BY JUDY MESSINA

As an expert networker and community organizer, Melva Miller honed her skills as founding executive director of the Sutphin Boulevard Business Improvement District and in the Queens borough president’s office, where she was director of economic development and. later, deputy borough president. Among Miller’s accomplishments in Queens was as project lead for the state-funded strategic investment plan to revitalize downtown Jamaica by attracting residents, visitors and new industry and helping existing businesses thrive and grow.

Miller joined the Association for a Better New York (ABNY) to lead its 2020 census initiative, educating New Yorkers on the importance of being counted. Miller has worked to broaden ABNY’s membership, increasing the number of labor-organization members and recruiting smaller businesses, sole practitioners, women-led businesses, and organizations and businesses from Staten Island.

How did you come to your current position of power?

I started at ABNY in 2018 to run the census effort, bringing our public and private partners, to complete the count for the 2020 census. We had the opportunity to broaden ABNY’s network, reaching into communities we historically were not able to work with. Leadership found there’s a unique opportunity to work closely with these communities and build relationships with them. It evolved into a vision of how ABNY could grow, and in August 2020 they asked if I would take over as CEO.

Takeaway for business professionals

Melva Miller is the first CEO of the Association for a Better New York, a coalition of businesses, nonprofits, labor and government that works to develop programs and public policies for the betterment of the city and its residents.

How would you describe what you do?

Primarily, ABNY is a convener. In founding ABNY, the founders were convening stakeholders across the city [in order] to come up with innovative solutions to address the city’s most pressing problems. I really see the work I do as being a community builder. You have to think comprehensively when thinking about growing the city, for example, how public transportation affects the growth of a community and schools, how education helps growth.

How does one exercise power in the work you do?

In my experience, power lies in being able to lead from behind. We can’t do things by ourselves—we need others. It’s the building of a coalition that gets things done. When you do that, you create relationships and foster those relationships in a way that people respect. My holding power or the organization’s holding power really lies in the relationships we have with other stakeholders around the city. You need the public sector, the private sector, the nonprofits, whether it’s real estate or artists. They are the things that make New York City great and we need New York [to be] behind those things.

What are the benefits of holding power?

People need to feel invested in something in order for them to appreciate it and be proud of it.

If we are convening stakeholders around an issue whether based on historical relationships or context, people will come and we can leverage our power to get things done. When we were trying to get a complete count for the census, we were able to make phone calls, sit around a table with the government, the nonprofit sector, the for-profit sector and

come up with a comprehensive plan. How you use power— because of reputation or relationships, you can leverage that to get things done. People will listen and they will be enthusiastic.

Our community-based art program around Covid was a space that ABNY was not traditionally in. We said we want you to lead this and we’ll support you and there was a better outcome because the community felt invested because of how inclusive we made it.

What is the most important thing you’ve accomplished since you became head of ABNY?

To make it more inclusive. I’m really proud of how we’ve grown not only in size and reach, but how we have diversified in geography, getting some Staten Island businesses and organizations involved, also smaller businesses, sole practitioners, women-led businesses. We have always had labor participation, but we have grown labor organizations.

When you’re talking about a better New York, you can only do that with diverse

voices around the table. I’m proud of how we’ve grown and have reached out to all corners so they can participate in a really meaningful way.

What is on your agenda for this post-pandemic period we are in right now?

Growing the city and how we do that, making it a better place for all who work, visit and live in New York. It’s not “this or that.” It’s “this and that.” Something we are really focusing on are conversations about how to make the city more affordable—how we make sure the city remains and becomes sustainable for everyone, [that] people make a fair and livable wage, way [that] we have affordable housing. We want to make sure the city continues to grow and that industry continues to come to the city and that all classes and lives are in the conversation.

How does the kind of power you hold today differ from the kind of political power you held in your roles in the

ASHLEY HOLT

DOSSIER

NUMBER OF EMPLOYEES 7

ON HER RÉSUMÉ Founding executive director, Sutphin Boulevard Business Improvement District (2004-07); director of economic development, Queens borough president’s office (2007-15); deputy Queens borough president (2015-18); executive vice president, ABNY (2018-20); CEO, ABNY (2020-present)

BORN New York City

RESIDES Laurelton, Queens

EDUCATION Bachelor of Science, crim inal justice, John Jay College; Master of Social Work, Hunter College; Master of Arts in philosophy, City University of New York; Doctor of Philosophy, City University of New York

BREAKING THE MOLD Miller led ABNY’s 2020 census initiative to maximize the city’s census count, the results of which affect countless programs from hospitals and health centers to food programs and housing vouchers. In the process she brought together 50 orga nizations, including players in health care, labor, philanthropy and the non profit world that used their networks to provide information and encourage New Yorkers to complete the census.

Queens borough president’s office?

The roles were very similar. The work I’m doing now is just on a citywide scale. As executive of a county, we weren’t legislators but wanted to make sure the borough ran smoothly through public services, schools, sanitation, economic growth. [In my role at ABNY] I work with the public sector all the time to move the city forward, very similar to what I did in Queens. I worked with private sectors on how to grow Long Island City, how to make downtown Flushing more affordable. [At ABNY we do it] on a citywide scale. People come to us expecting us to automatically do things—but it’s work. It’s [also] an opportunity because we have to show who we are and that we really care.

What lessons have you learned during your career? About power? About people?

The biggest lesson I’ve learned around power is that you don’t have it unless other people give it to you. You have to earn it and when you don’t earn it, it’s not true power. In my experience it’s really about those relationships that you build along the way. ■

IT’S CLEAR from reading the titles and responsibilities of the individuals on this list that women have made genuine gains on Wall Street.

Shifting social norms, the tireless e orts of many pioneering women and more than a few hefty legal settlements have brought change to the maledominated worlds of investment banking, trading, research and wealth management. Over time, women have made signi cant inroads. Although there is still much to be done in the way of true gender equity, the rise of women in all areas of Wall Street is real and worth noting.

Today, of course, much of the business of “Wall Street” is conducted virtually and by companies whose headquarters are sometimes thousands of miles from the Financial District. Yet most of the nation’s largest nancial rms, together with an entire ecosystem of suppliers and competitors, continue to call New York home—whether near Wall and Broad, downtown or Midtown, West Side or East.

e companies make New York one of the world’s leading nancial centers and the engine that drives the metropolitan area’s economy.

From those organizations, Crain’s has identi ed 31 outstanding individuals for its Notable Women on Wall Street list.

is year’s honorees work in a variety of roles, including investment banking, private equity and asset and wealth management. In addition to their demanding professional duties, these talented individuals make time to contribute to the social, cultural and educational fabric of New York.

ERICA BARRETT Managing director, U.S. institutional rates | Tradeweb

As member of Tradeweb’s operating committee and a leader of key teams, managing director Erica Barrett oversees the rm’s commercial relationships with its largest dealers. Barrett structures multiyear agreements across regions, products and platforms with the world’s largest investment banks. In her career at Tradeweb, which builds and operates electronic marketplaces for xed-income products, exchange-traded funds and derivatives, she helped establish and expand its money market and repo electronic platforms. Barrett is on the board of Tuesday’s Children, which was founded in the aftermath of Sept. 11, and cares for communities a ected by terrorism, military con ict or mass violence.

SARAH BRATTON HUGHES

Sarah Bratton Hughes leads American Century’s sustainable research and investment stewardship team, implementing rmwide environmental, social and governance research and training, creating assessment tools, managing the engagement and proxy voting protocols, and driving sustainable investment initiatives and product development. Bratton Hughes is the youngest member of her rm’s investment leadership team, which consists of the rm’s senior leaders. e senior vice president is a former global head of sustainability solutions for Schroders. Bratton Hughes is a member of Women in Social Finance, a group that fosters connection, advancement and collaboration for women in the industry. She was the rst female president of the St. Francis College alumni association.

SUZANNE BRENNER

|

Suzanne Brenner leads the investment research group in Brown Brothers Harriman’s private banking business. Brenner is responsible for manager selection, capital allocation and investment decisions across the division’s client portfolio. As a partner of the rm, she is also responsible for strategic leadership, mentoring and employee engagement within her line of business. Before joining the bank in 2017, Brenner was chief investment o cer of the Metropolitan Museum of Art and, earlier, director of investments and assistant treasurer of the Rockefeller Foundation. She is on the New York Botanical Garden Investment Committee.

KERRY DOLAN

Founder,

managing

partner | Brinley Partners

As founder, in 2021, of a woman-run alternative investment rm, Kerry Dolan focuses on providing capital solutions to high-quality, below-investment-grade companies. e rm’s Brinley Private Debt Fund I is one of the largest rst-time credit funds, and it’s one of the few founded and run by a woman. Before founding Brinley Partners, Dolan was a managing director on the credit investments team at PSP Investments. She previously held senior positions at Goldman Sachs, Barclays Capital and Bank of America. Dolan is an associate board member of the Melanoma Research Alliance, and she co-chairs the Leveraged Finance Fights Melanoma event.

PADMA ELMGART

Chief technology of cer | Global Atlantic Financial Group

Focused on moving Global Atlantic’s technology from legacy insurance platforms to those that support a wider role in nancial services, Padma Elmgart has led initiatives to build a proprietary enterprise data platform and a proprietary risk and investment platform. e chief technology o cer, a former chief information o cer at Deutsche Bank, is a member of Global Atlantic’s management committee. Elmgart is a director of StreetWise Partners, a workforce development mentoring program, and a member of the David Rockefeller Fellows program, where rising business leaders are taught civic leadership skills and the workings of the city.

Partner, chief investment of cer, private banking

Brown Brothers Harriman

Senior vice president, head of sustainable investing | American Century Investments

KAREN FANG

Managing director, global head of sustainable finance Bank of America

Karen Fang is responsible for driving Bank of America’s goal of deploying $1.5 trillion in sustainable finance capital by 2030. The managing director and her team work across the bank’s eight business lines to mobilize and deploy capital that contributes to environmental and social sustainability. Fang helped establish the bank’s sustainable finance strategy and taxonomy and has driven thought leadership across international alliances and task forces. She is spurring innovation in decarbonization financing and investments. Fang previously held senior management positions in sales, trading and structured financing in the bank’s global markets area. She is a former managing director at Goldman Sachs.

ILENE FISZEL BIELER

Global head of investor relations, chief operating officer for global markets and global credit finance State Street Corporation

Ilene Fiszel Bieler manages State Street’s relationships with its shareholders and Wall Street. She has been instrumental in improving investor understanding of the company’s vision during a significant strategic pivot. Fiszel Bieler provides key market insights, financial analysis and competitor intelligence to senior management. The global head and chief operating officer previously was head of investor relations in the Americas for Barclays, and she held leadership positions at Citigroup. She is a board member and volunteer career mentor at the Jeremiah Program in Brooklyn, which seeks to assist single-parent families.

MEENA FLYNN

Co-head, global private wealth management Goldman Sachs

Goldman Sachs describes the private wealth management business as one of its strategic growth engines.

As co-head of that practice, Meena Flynn oversees a global effort to serve the holistic wealth management needs of family offices, foundations and endowments, and ultra-high-net-worth individuals. Flynn, a partner since 2014, is a co-chair of the firm’s global inclusion and diversity committee and a member of the firmwide consumer and wealth management executive council. She is a director of Sanctuary for Families, a service provider and advocate for survivors of domestic violence, sex trafficking and related forms of gender violence.

ROBERTA GOSS

Senior managing director, head of the bank loan, CLO platforms Pretium

In her three years since joining Pretium, an alternative investment manager specializing in the real estate and credit markets, Roberta Goss has helped build and lead the firm’s collateralized loan obligation business and managed investments across its other leveraged loan portfolios. The senior managing director, a veteran of the leveraged credit business, oversees Pretium’s analyst and portfolio management team and marketing efforts for the bank loan and CLO platforms. Goss is a member of Pretium’s executive committee. She helps manage the firm’s summer internship program with Girls Who Invest, a program that seeks to bring more women into portfolio management.

STACY HAISLIP

Director, portfolio management

TAG Associates

As a member of the investment committee at TAG Associates, a large multifamily office and investment manager for endowments and foundations, Stacy Haislip oversees long-only managers in the areas of equities, fixed income and liquid alternatives. In addition, Haislip has taken on greater coverage of the firm’s private-equity and venture investments. The director of portfolio management previously worked at D.E. Shaw and in JPMorgan’s global investment opportunities group.

Since 2015, Haislip has been a trustee at the Brooklyn Emerging Leaders Academy, a women’s charter high school that focuses on science, technology, engineering, arts, architecture and math.

DIVERSITY AND INCLUSION ARE COMPANY PRIORITIES

, 78% OF RESPONDENTS SAID IN A PWC FINANCIAL-FIRM SURVEY

—PWC D&I BENCHMARKING SURVEY

LISA HORNBY

Head of U.S. multisector fixed income Schroders

At Schroders, Lisa Hornby manages a variety of strategies for institutional and retail clients, including the Hartford Schroders Sustainable Core Bond Fund and the Hartford Schroders Tax-Aware Bond Fund. Her U.S. multisector fixed-income team has integrated the analysis of environmental, social and corporate governance factors into its investment process and launched sustainable investment funds and a thematic fund focused on issuers with what are considered best-inclass labor practices. Hornby was portfolio manager at Schroders for 10 years before being promoted to her current role in 2020. She gives back to the community as a member of the financial advisory board of Rutgers University, her alma mater.

MICHAL KATZ

Head of investment and corporate banking Mizuho Americas

Michal Katz oversees all investment and corporate banking activity at Mizuho Americas, which serves clients in the U.S., Canada and Latin America. Katz is on the firm’s management committee and is a sponsor of the company’s women network, which seeks to advance the recruitment and retention of women in the financial sector. Before working at Mizuho, Katz was co-head of global technology investment banking at RBC Capital Markets and a managing director at Barclays and Lehman Brothers. She is a trustee and treasurer of the Grammy Museum Foundation, an educational arm of the Recording Academy.

LORRAINE KELLY

Global head of Investment Stewardship Solutions Institutional Shareholder Services

Lorraine Kelly oversees strategy for Institutional Shareholder Services’ core governance and environmental, social and corporate governance business lines. Kelly’s purview encompasses the firm’s proxy voting, corporate governance research, responsible investment and global proxy distribution offerings. As global head of Investment Stewardship Solutions, she is responsible for setting strategic priorities for ISS LiquidMetrix and the firm’s Securities Class Action Services subsidiary. She has presided over the introduction of voting policies related to climate and corporate governance and has implemented efficiencies in the proxy voting business. Kelly, a mentor to women and diverse employees, is on the finance committee of the Visual Arts Center of New Jersey.

ALEXANDRA LEBENTHAL

Senior adviser

Houlihan Lokey

Wall Street veteran Alexandra Lebenthal began her career in the municipal bond department at Kidder Peabody. She joined her family’s business, Lebenthal & Co., in 1988 and became its president and CEO. As senior adviser at Houlihan Lokey, Lebenthal leads an initiative that focuses on female-led companies. She works on connecting banking teams in every sector and transaction type with female founders who have little or no network available to them.

Lebenthal founded the Women’s Executive Circle and Women on Wall Street, both for UJAFederation. She is the city vice chair of C200, an organization for women in business.

TIFFANY LEWIS Managing director J.P. Morgan Private Bank

At J.P. Morgan Private Bank, Tiffany Lewis is head of private infrastructure investments and head of private diverse manager investments strategies, dual roles that she established there. Lewis is responsible for sourcing, underwriting and monitoring venture, growth-equity, privateequity, private-credit and real-assets funds. The managing director also handles fund and manager selection and performs investment due diligence, performance monitoring and tracking. Lewis led a partnership with GCM Grosvenor for its Advance Fund, a pioneering commingled diverse-manager strategy. She is partnering with GCM on a strategy that will focus on emerging Black fund managers. Lewis is on the board of Leading Educators, which aims to close the gap in access to an equal education.

Heather Orrico

Nathalie

STEPHANIE LINK Chief investment strategist Hightower Advisors

Stephanie Link supervises a team of 10 equity and fixedincome analysts and traders and manages an almost $3 billion equity portfolio for Hightower Advisors, one of the nation’s largest registered investment advisory firms. Her group at Hightower provides outsourced chief investment officer services, model portfolios, investment research and due diligence to the firm’s advisers across the country. The chief investment strategist and portfolio manager is on Hightower’s leadership committee and its solutions team. She previously was a senior managing director at Teachers Insurance and Annuity Association Investments and chief investment officer at TheStreet. Link is a regular contributor on CNBC and is on the board of the Pingry School in Basking Ridge, New Jersey.

global wealth leadership team, leads its private banking activities in 50 global offices. Under her direction, the team advises on investments, banking, lending and wealth planning by taking a “full family” approach that includes spouses, children and other relatives.

Citi Private Bank’s global head previously was global head of sales and marketing at Vivienne Tam, a womenswear design firm, and an investment banker at Merrill Lynch in New York and Hong Kong. Liu is co-head of the Citi Asian Heritage Steering Committee and a member of the Committee of 100, which encourages constructive relations between U.S. and China.

NELLE MILLER

Managing director, co-CEO, New York

Private Bank

J.P. Morgan Private Bank

As co-CEO of JPMorgan’s private banking business in New York, Nelle Miller leads and manages a team of more than 300 bankers, investment professionals and lawyers who provide wealth management services to clients in the metropolitan area. The managing director is a member of the private bank’s U.S. operating committee. Miller was a founding member of a team focusing on multi-asset class trading strategies for individuals, family offices and hedge funds. Miller, vice chair of a group of senior bank leaders working with charitable organizations in New York, is a director of the National Center on Addiction and Substance Abuse, which helps understand, prevent and treat those conditions.

NKONYE OKOH Managing director JPMorgan

In addition to leading JPMorgan’s structured product sales to financial institutions in the U.S. and Latin America, Nkonye Okoh became head of derivatives sales to pension funds, endowments and found ations in 2020. Revamping that group’s strategy and team structure proved so successful that she was given responsibility for the equity and cross-asset quantitative investment strategies and risk premia businesses. Okoh is co-chair of the Black Leadership Forum, which focuses on the development, advancement and retention of Black employees in JPMorgan’s investment bank. Okoh is on the board of the Coney Island Prep Charter School and the board of the Business Outreach Center Network.

IDA LIU

Global

head Citi Private Bank

Liu, a member of Citibank’s

HEATHER ORRICO

Co-head of Global Macro Americas BNP Paribas

At BNP Paribas, Heather Orrico is responsible for sales and trading in the bank’s foreign exchange, emerging markets, commodity derivatives and developed market rates business. The co head of Global Macro Americas manages 165 people in the U.S., Canada, Brazil, Mexico, Colombia and Argentina. As a member of the bank’s Diversity, Equity and Inclusion Leadership Forum, Orrico created monthly virtual coffee chats during the pandemic as a space for women across the Americas at BNP Paribas to share experiences and raise questions. She is a member of the Institute of International Finance Futures Leaders’ Class of 2022, a group of 55 deemed by their firms to become leaders in global finance.

ELIZABETH OSTRANDER Chief operating officer Crossbeam Venture Partners

As chief operating officer and a partner at Crossbeam, Elizabeth Ostrander has helped reconfigure her firm to include CoVenture, a structured credit business, enabling it to provide equity and debt capital to portfolio companies in a variety of ways while helping to increase the success of both of its business lines. Ostrander also led the transition to fully remote work, while improving efficiency and fostering team spirit. She spent 10 years volunteering with the New York Junior League, serving on its provisional training committee and as co chair of the Junior Junior League.

RASHAAN REID

Head of Global Senior Relationship Management, Global Markets & Banking Bank of America

Rashaan Reid leads a team that serves Bank of America’s largest asset management clients around the world. Reid plays a central role in shaping and driving the bank’s client strategy. She delivers products and services across fixed income, equities, prime brokerage, transaction services and banking. She is heavily involved in the firm’s diversity initiatives as co chair of its women’s leadership council and a founding member of a group to develop and engage African American leaders in markets and banking. Reid is a national board member of Room to Grow, a not for profit organization that supports families raising babies in lower income communities.

LAUREN RICH Managing director Wafra

At Wafra, a diversified, alternatives focused investment manager and private equity firm, managing director Lauren Rich is co lead of the strategic partnerships business. Rich focuses on maximizing the value of mature general partnership stakes in private equity managers. She has structured several investments and completed the exits of several portfolio companies. Before joining Wafra six years ago, she was a lawyer with Davis Polk & Wardell. Rich, a founding member of Wafra’s DEI committee, oversees the firm’s self evaluation process and examines the effectiveness of its training to support the firm’s diversity, equity and inclusion efforts.

A notable woman on Wall Street — and all streets

ACCOUNT

Marina Severinovsky leads sustainability efforts and environmental, social and governance integration for Schroders investments in North America. She collaborates with senior managers on market strategy, client communications, product development, sales and investor management. Severinovsky has written white papers and articles, led industry roundtables and been a public voice for sustainable investing and for leveraging tools that measure ESG factors and how they affect investor portfolio returns. She is a member of the Net Zero Asset Managers initiative, which is committed to supporting the goal of net zero greenhouse gas emissions by 2050. Severinovsky is active in the Columbia University Sustainability Career Program.

At union-owned Amalgamated, CEO and President Priscilla Sims Brown has led efforts to increase the bank’s market share and profitability while encouraging partnerships with organizations that help

it fulfill its social mission in 10 impact areas. The areas include voting rights, gun safety, climate justice and racial equity. Sims Brown joined Amalgamated last year after serving as a director of the Teachers Insurance and Annuity Association and holding senior marketing positions at major diversified insurance companies. She has been a director and supporter of Project Mercy for 21 years. The nonprofit serves thousands of children, women and families in Ethiopia.

—MORNINGSTAR

MARINA SEVERINOVSKY Head of sustainability, North America Schroders Mizuho Americas congratulates Michal Katz, Head of Investment & Corporate Banking, on being selected by Crain’s New York Business as one of its 2022 Notable Women on Wall Street.

MELISSA SMITH

Head of specialized industries, middle market banking and specialized industries J.P. Morgan Commercial Bank

Melissa Smith oversees more than 350 bankers serving industry sectors that include technology and disruptive commerce, life sciences, health care services and the green economy. In the past 18 months Smith has played a pivotal role in establishing the bank’s partnership with Techstars, a growth accelerator for entrepreneurs, with the goal of advancing equitable access to funding for diverse founders. Working with Techstars, the bank plans to invest more than $80 million in diverse founders across the country, with members of Smith’s team serving as mentors. Smith, a trained ballerina, has been on the executive committee of the American Ballet Theatre’s board of trustees since 2010.

TRACY STUART

CEO, managing partner Corbin Capital Partners

At Corbin Capital Partners, an alternative asset management firm, Tracy Stuart has encouraged environmental, social and corporate governance integration. The CEO and managing partner has done so by launching a program that fosters cooperation with Corbin’s manager partners to identify the material factors that support the adoption of sustainability in the investment process and at the management level. Stuart, who is passionate about furthering diversity, equity and inclusion, has prioritized increasing the number of female and diverse decision-makers. Of Corbin’s partners, 54% are women or minorities. Stuart has been an angel investor of 100 Women in Finance for more than 20 years. She chairs the board-level investment committee of Save the Children.

WOMEN

FOR 11% OF FUND MANAGERS, A FIGURE THAT HASN’T CHANGED IN A DECADE

DANA TELSEY CEO, chief research officer Telsey Advisory Group

Retail industry analyst Dana Telsey leads a team at Telsey Advisory Group that covers U.S. and international companies of all sizes engaged in apparel, footwear and cosmetics manufacturing, as well as retailers of all types. The CEO has followed more than 100 companies during her 33-year career, including those in the European luxury goods sector. Her firm is certified as a woman-owned business enterprise by several states, cities and plan sponsors. She launched the Telsey Consumer Fund, a hedge fund. Telsey is a trustee of the International Council of Shopping Centers.

NATHALIE TEXIER-GUILLOT

Co-head of global equities sales, Americas

BNP Paribas

At BNP Paribas, Nathalie Texier-Guillot is responsible for building and implementing the bank’s commercial strategy for equities sales.

As co-head of global sales, Americas, Texier-Guillot leads alternative risk transfer efforts in the U.S., offering institutional clients access to uncorrelated returns in international markets. Under her direction, the bank’s U.S. equity derivatives business has doubled and now accounts for one-third of the global total. She is a board member of the bank’s Women in Global Markets group, which helps to drive coaching and mentoring initiatives. Texier-Guillot is on the board of the French Institute Alliance Française, one of the largest centers of French–American culture and education in the U.S.

ALL-FEMALE TEAMS MANAGE 2% OF FUND ASSETS; ALL-MALE TEAMS RUN 70% OF FUNDS

— MORNINGSTAR

SONALI THEISEN

Global head of FICC e-trading/ markets strategic investments Bank of America

The buying and selling of interest-rate products, credit products, mortgages, currencies and commodities in cash and derivative instruments is known as FICC trading, using an acronym for the Fixed Income Trading Corp., an industry-owned organization that acts as a clearinghouse.

Sonali Theisen, head of Bank of America’s FICC electronic trading initiatives, also manages its global markets fintech investments. Theisen, who previously worked at Barclays, Bear Stearns and Goldman Sachs, has been a leader in digitizing fixed-income trading. She has been involved in market structure and regulatory issues, serving as the sole representative of a global bank on the Securities and Exchange Commission’s fixed-income market structure committee.

DAPHNE TONG

Partner, co-head of private equity WestCap

At WestCap, partner Daphne Tong co-chairs the investment committee and leads the tech-oriented private-equity firm’s deal teams in due diligence and the investment process. Tong oversees the investments in more than half of the firm’s 36 total portfolio companies and leads initiatives involving mentorship and diversity, equity and inclusion issues. Before joining WestCap in 2020, she was co-head of the privateequity funds and co-investment group in the Americas for GIC, an investment firm managing Singapore’s foreign reserves. Tong previously worked in the Blackstone Group’s privateequity division, and she was a health care investment banking analyst at Goldman Sachs.

POSITIONS AVAILABLE REQUST FOR PROPOSAL

Business Analyst (Citadel Enterprise Americas Services LLC – New York, NY); Mult. Pos. Avail. Offered salary $150k$200k. Evaluate current tactical issues, lead small/mid-size initiatives, & contribute to the design and solution of enterprisewide strategic initiatives. F/T. Reqs a Bachelor’s degree (or foreign equivalent) in Info Sys Managem't, Info Sec, CS, or a rel quant field. 5 yrs of exp in business analysis or project managem’t in the fin services industry. Edu, train or exp must include the following: serv’g as a Scrum Master & facilitat’g organizat’l adopt’n of Scrum & Agile software development methodologies; programming in Python or SQL; scaling Agile and utiliz’g Agile tools includ’g JIRA, Confluence & Atlassian; & work’g on custom software develop. projects related to the trad’g lifecycle, investm’t managem’t, fin mrkts & complex asset classes includ’g fixed income & derivatives. Resumes: citadelrecruitment@citadel.com. JobID: 6261655.

Wildlife Conservation Society (WCS) Request for Proposal: Construction Management Services, Prospect Park Zoo, Baboon Night Quarters & Exhibit.

Proposal Due Date: January 31, 2023 (Electronic submission to bids@wcs.org). Pre-Proposal Conference Site Visit(In Person): Dec. 13, 2022. The project is funded by the City of New York through its Department of Parks and Recreation and is subject to certain NYC requirements and WCS policies. For a copy of the RFP please email ahowell@wcs.org.

PUBLIC & LEGAL NOTICES

Notice of Formation of EVERGREEN STAFFING LLC

Arts. of Org. filed with Secy. of State of NY (SSNY) on 11/07/22.

Notice of Formation of DARBY TOWNHOMES

DEVELOPER, LLC

Arts. of Org. filed with Secy. of State of NY (SSNY) on 11/10/22. Office location: NY County. Princ. office of LLC: 30 Hudson Yards, 72nd Fl., NY, NY 10001. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to Corporation Service Co., 80 State St., Albany, NY 12207.

Purpose: Any lawful activity.

Notice of Formation of LAUREN J. HOFFMAN

PSYCHOLOGY, PLLC

Arts. of Org. filed with Secy. of State of NY (SSNY) on 10/07/22. Office location: NY County. SSNY designated as agent of PLLC upon whom process against it may be served. SSNY shall mail process to Corporation Service Co., 80 State St., Albany, NY 12207-2543. Purpose: Practice of psychology.

PUBLIC & LEGAL NOTICES

Notice of Qualification of PARFUM FRANCIS KURKDJIAN, LLC

Appl. for Auth. filed with Secy. of State of NY (SSNY) on 08/10/09.

Office location: NY County. LLC formed in Delaware (DE) on 07/20/09. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to c/o Corporation Service Co., 80 State St., Albany, NY 12207-2543. DE addr. of LLC: 2711 Centerville Rd., Ste. 400, Wilmington, DE 19808. Cert. of Form. filed with Secy. of State, DE, John G. Townsend Bldg., 401 Federal St. - Ste. 4, Dover, DE 19901.

Purpose: Any lawful activity.

Notice of Qualification of MENAI MARKETS LLC

Appl. for Auth. filed with Secy. of State of NY (SSNY) on 10/03/22.

Office location: NY County. LLC formed in Delaware (DE) on 07/31/20. Princ. office of LLC: 520 Madison Ave., 21st Fl., NY, NY 10022. SSNY designated as agent of LLC upon whom process against it may be served. Original addr. of process was Corporation Service Co., 251 Little Falls Dr., Wilmington, DE 19808; however, as amended by Cert. of Change filed with SSNY on 10/19/22, SSNY shall mail process to c/o Corporation Service Co., 80 State St., Albany, NY 12207-2543. DE addr. of LLC: 251 Little Falls Dr., Wilmington, DE 19808. Cert. of Form. filed with Secy. of State, 401 Federal St., Dover, DE 19901.

Purpose: Digital asset financial services provider.

Notice of Qualification of FARALLON ASIA (GP) II, L.L.C.

Appl. for Auth. filed with Secy. of State of NY (SSNY) on 10/20/22.

Quantitative Research Associate (Pacific Investment Management Company LLC (PIMCO) – New York, NY); Mult. pos. avail. Employ mathmtcs & comp. sci. skills to dvlp analytical models that contribute to sustained business grwth, enabling quant decision-making for clientfacing business ldrs by measuring & articulating the effectiveness of sales & marketing campaigns. F/T. Offering salary of $215,000 to $225,000 per year. Apply w/ resume to Lupe.Rubalcaba@pimco.com.

Ref. JobID: 6772936.

Office location: NY County. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to c/o Farrell Fritz, P.C., 400 RXR Plaza, Uniondale, NY 11556.

Purpose: Any lawful activity.

Notice of Qualification of FARALLON OVERLOW GP II, L.L.C.

Appl. for Auth. filed with Secy. of State of NY (SSNY) on 10/20/22.

Office location: NY County. LLC formed in Delaware (DE) on 09/10/19. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to c/o Corporation Service Co. (CSC), 80 State St., Albany, NY 12207-2543.

DE addr. of LLC: c/o CSC, 251 Little Falls Dr., Wilmington, DE 19808. Cert. of Form. filed with Secy. of State, 401 Federal St., Dover, DE 19901.

Purpose: Any lawful activity.

Notice of Qualification of FARALLON HOLDCO, L.L.C. Appl. for Auth. filed with Secy. of State of NY (SSNY) on 10/20/22.

Office location: NY County. LLC formed in Delaware (DE) on 11/09/15. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to c/o Corporation Service Co. (CSC), 80 State St., Albany, NY 12207-2543.

DE addr. of LLC: c/o CSC, 251 Little Falls Dr., Wilmington, DE 19808. Cert. of Form. filed with Secy. of State, 401 Federal St., Dover, DE 19901.

Purpose: Any lawful activity.

Notice is hereby given that a license, number 1345855 for onpremise beer, wine, cider and liquor has been applied for by Restaurant Services and Technology, LLC - DBA Bumblerella, a Jazz Club for onpremises consumption under the Alcohol Beverage Control Law at 212 East 52nd Street, New York, NY 10022.

Office location: NY County. LLC formed in Delaware (DE) on 11/13/11. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to c/o Corporation Service Co. (CSC), 80 State St., Albany, NY 12207-2543.

DE addr. of LLC: c/o CSC, 251 Little Falls Dr., Wilmington, DE 19808. Cert. of Form. filed with Secy. of State, 401 Federal St., Dover, DE 19901. Purpose: Any lawful activity.

Healthcare Reporter

Notice of Formation of DARBY TOWNHOMES PRESERVATION GP, LLC

Arts. of Org. filed with Secy. of State of NY (SSNY) on 11/10/22.

Office location: NY County. Princ. office of LLC: 30 Hudson Yards, 72nd Fl., NY, NY 10001. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to Corporation Service Co., 80 State St., Albany, NY 12207.

Purpose: Any lawful activity.

Modern Healthcare is seeking a reporter to cover post-acute care organizations and the growing movement in medicine to care for patients outside the hospital. You’ll cover daily news, write breaking news and enterprise stories for our website as well as longer-form articles for our magazine. There also are opportunities for video interviews and podcasts.

data and assets back to the people and taking it away from large centralized companies,” Fred Wilson, co-founder of venture capital rm Union Square Ventures, wrote in a Nov. 15 note on his blog. Union Square Ventures has a range of crypto companies in its portfolio and made an early investment in exchange platform Coinbase in 2013. “We need trusted and

substantial percentage of workers, while Celsius Networks, a cryptocurrency lender, entered Chapter 11 bankruptcy protection in July.

“New Yorkers are a little more grizzled from having lived through a couple weird crises,” said Alex Miller, chief executive o cer of Union Square–based Hiro, a 50-person blockchain rm that makes tools developers use to create apps and services on top of bitcoin.

have received so-called BitLicenses, required for certain crypto activities. FTX, although o shore, ran a site called FTX.US available to U.S. traders, meaning that local regulation failed to protect companies that invested and customers who used the exchange.

FTX itself does not seem to have had a foothold in New York, though.

well-regulated centralized entities to survive and thrive, and we also need decentralized Web3 protocols to ourish and provide a path to a fully decentralized web.”

Web3 is the term for the iteration of the World Wide Web built on decentralized, validated records called blocks.

is is not the city’s rst run-in with a crypto crash. In 2018, after a breathtaking climb, the value of crypto plummeted, and dozens of new rms shuttered. Amid this year’s decline in crypto valuations, cryptocurrency exchange Gemini, a marketplace for non-fungible tokens, OpenSea and blockchain software rm Consensys each laid o a

Miller and Wilson are not alone in their optimism. In October BNY Mellon opened a digital asset custody platform so users could hold bitcoin and ether tokens, and a few weeks later local ntech rm Betterment added crypto trading to its personal investment platform. Early in the summer, 15,000 NFT enthusiasts descended on the city for days of meetups and parties.

Implosion

Yet 1,100 miles away, in the Bahamas, Bankman-Fried’s group was attracting customers to FTX with a diverse array of tokens, discounts for buyers of the FTX Token, Tom Brady commercials, stadium naming rights and even rare payouts (basically dividends) on coin holdings.

New York has a nine-year-old regulatory framework for industry players that operate in the state, but only about two dozen companies

“I never see their presence here at any of the meetups,” said Art Malkov, a city-based marketing adviser for crypto companies and the co-founder of London-based Web3 Lab.

In early November CoinDesk, a news outlet owned by Digital Currency Group, noted accounting inconsistencies in an internal document it reviewed from FTX and its attached trading fund, Alameda Research. Soon FTX stopped ful lling withdrawal requests. Binance, a competitor, extended and then reneged on a possible acquisition offer, which set o an implosion. On Nov. 11 FTX led for Chapter 11 protection as news emerged that billions of dollars of FTX customer cash had been funneled into Alameda, which was making highly leveraged bets on other cryptocurrencies and companies.

In New York, the extent of the fallout was still playing out in the week following the collapse. BlockFi, a New Jersey–based exchange, shut down withdrawals amid a rumored upcoming bankruptcy ling, and several leading venture capital rms put out statements

that they were writing down their investments in FTX to $0. Meanwhile, cryptocurrency values, declining all year, plunged further.

Trust and transparency

Malkov says a robust group of focused crypto developers and enthusiasts is continuing to build products that deliver on the core innovation of the blockchain.

For decades, idealistic computer engineers had worked around the concept that the web could embed

trust in applications, transactions and other processes by including transparency and replication in every transfer of information. at vision became tenable in 2008, with the famous anonymous paper that outlined bitcoin, and it is that promise of decentralization that holds for the New Yorkers who are still all-in on crypto, insiders say.

“If you have to rely on a trusted intermediary,” Hiro’s Miller said, “things like this will keep happening.” ■

U.S. Senator Charles E. Schumer New York

“WE NEED WELL-REGULATED CENTRALIZED ENTITIES TO SURVIVE AND THRIVE”