Crains New York - July 30, 2012 - (Page 10)

OPINION S bloomberg news Sandy Weill’s about-face will be able to absorb the inevitable blowups, like JPMorgan Chase’s recent trading loss of as much as $9 billion. Considering New York’s dependency on the health and soundness of its financial services companies, it’s essential to find the right answer to the too-big-to-fail question. CRAIN’S NEW YORK BUSINESS editor in chief Rance Crain publisher, vp Jill R. Kaplan EDITORIAL editor Glenn Coleman deputy managing editors Valerie Block, Erik Ipsen assistant managing editors Erik Engquist, Jeremy Smerd senior producer, news Elisabeth Butler Cordova news producer Lauren Elkies contributing editor Elaine Pofeldt columnists Greg David, Alair Townsend crain’s health pulse editor Barbara Benson senior reporters Theresa Agovino, Aaron Elstein, Lisa Fickenscher, Matthew Flamm, Daniel Massey, Miriam Kreinin Souccar reporters Amanda Fung, Andrew J. Hawkins, Shane Dixon Kavanaugh, Adrianne Pasquarelli web reporter, producer Ian Thomas art director Steven Krupinski deputy art director Carolyn McClain staff photographer Buck Ennis copy desk chief Steve Noveck copy editor Thaddeus Rutkowski data editor Suzanne Panara assistant data editor Emily Laermer researchers Eva Saviano, Amy Stern interns Esthena Brutten, Ken Christensen, Cara Eisenpress, Emily Lundeen, Mary Shell ONLINE AND INTERACTIVE SERVICES general manager, online & e-commerce strategy Kira Bindrim senior web developer, interactive Chris O’Donnell ADVERTISING, MARKETING AND PRODUCTION advertising director Trish Henry senior account managers Irene Bar-Am, Courtney McCombs, Sheryl Rose, Suzanne Wilson account executive Jill Bottomley Kunkes sales coordinator Danielle Wiener newsletter product manager Alexis Sinclair credit Todd J. Masura (313-446-6097) director, audience development Michael O’Connor senior marketing manager Catherine Schutten event producer Courtney Williams reprint sales manager Lauren Melesio production and pre-press director Michael Corsi advertising production manager Suzanne Fleischman Wies TO SUBSCRIBE: For print and digital subscriptions or customer service, e-mail customerservice@crainsnewyork.com or call 877-824-9379 (in the U.S. and Canada) or 313-446-0450 (all other locations). $3.00 a copy for the print edition; or $99.95 one year, $179.95 two years, for print subscriptions with digital access. www.crainsnewyork.com/subscribe TO ADVERTISE: Contact Advertising Director Trish Henry at thenry@crainsnewyork.com or call 212-210-0711. www.crainsnewyork.com/advertise FOR INFORMATION ON OUR EVENTS: Contact Event Producer Courtney Williams at cwilliams@crainsnewyork.com or 212-210-0257. www.crainsnewyork.com/events TO CONTACT THE NEWSROOM: andy Weill, the former head of Citigroup, stunned the financial world last week when he said that investment banking and traditional banking should again be separated by law. This from the man who had been, as much as anyone, the architect of the modern megabank. “What we should probably do,” Mr. Weill opined on CNBC, “is go and split up investment banking from banking—have banks be deposit takers, have banks make commercial loans and real estate loans, have banks do something that’s not going to risk the taxpayers’ dollars, that’s not going to be too big to fail.” There are only two remedies for too-big-to-fail conglomerates: Break them up or prevent them from failing. The Dodd-Frank reforms attempt the latter, but many banks and members of Congress are fighting even that, so there will be no forced breakups any time soon. Nonetheless, Mr. Weill’s epiphany should prompt the industry and policymakers to step back and re-examine old assumptions. Investors have already signaled that stuffing dozens of financial businesses into a single, massive entity can create something worth less than the sum of its parts. The current titans of banking, led by JPMorgan Chase chief Jamie Dimon, Mr. Weill’s former protégé, say the industry has learned from its mistakes and that modest safeguards will prevent future bailouts. Mr. Dimon has an exceptional record at his company. And maybe that’s the problem: Not every institution can be exceptional. Not all No to sick-days bill Backers of a City Council bill requiring employers to provide paid sick days won’t take no for an answer. Speaker Christine Quinn has halted the legislation, yet advocates recruited Gloria Steinem and actress Cynthia Nixon as spokeswomen. No doubt they picked them because the speaker is female. But Nancy Ploeger, who runs the Manhattan Chamber of Commerce, had it exactly right when she said: “What do these women know about running a small business?” Paid sick time is provided by nearly all businesses that can afford to—on terms that make sense for them. Some combine sick and vacation time, so costs are predictable and workers don’t play hooky with the sniffles. But the bill sponsors want the government making those decisions. A mandate would also let unions come to the table with nine annual sick days in hand, enabling them to bargain for more. The way to increase paid sick time is to help businesses earn enough money to offer it. We urge Ms. Quinn to maintain her opposition and focus her colleagues on helping businesses, not micromanaging them. CRAIN’S ONLINE POLL COMMENTS Popping off on soda limit HISPANIC CHAMBER: BAN IS BAD FOR BUSINESSES SHOULD THE FED TAKE FURTHER STEPS TO STIMULATE THE ECONOMY? Yes. The economy has stalled, unemployment has gone back up, and Congress is sitting on its hands. No. The steps already taken by the Fed haven’t helped much, and interest rates are already low. Date of poll: July 25 245 votes 60% Yes 40% No As we talk about the impact the beverage ban will have on small businesses throughout New York City, we must remember that Hispanic-owned businesses will be hit particularly hard. There are 143,000 Hispanic-owned businesses in New York City, making it home to 74% of the state’s Hispanicowned businesses. Mayor Bloomberg’s ban on soda servings larger than 16 ounces would impact locally owned delis, restaurants, fast-food establishments, movie theaters and food carts. Many of these small businesses rely on soda as a main revenue generator. Food-service establishments overseen by the city are already subject to inspections, violations and fines. These requirements, combined with the ban, will make it increasingly difficult for these businesses to continue to operate. With 58% of New Yorkers obese or overweight, Mayor Bloomberg’s public health efforts against obesity are understandable. Targeting a select industry, however, is not the answer to addressing the obesity crisis. Regulation is never a responsible substitute for proper education. —javier palomarez President and CEO U.S. Hispanic Chamber of Commerce Washington, D.C. tainted Mr. Weiner gives the campaign donations to charity and closes the door on his political ambitions. It’s been but a little over a year since he was pressured to resign by House Democrats for losing the respect of his constituents. What has he done to earn that respect back other than sit atop a campaign war chest and threaten to become a spoiler in one of the most important elections in New York City’s history? —karen casamassima NOW IT’S WEINER’S CHEST The $4.5 million in Anthony Weiner’s campaign chest should not be accessible to him, and he should start paying his own rent like everyone else in the Graybar Building. Whoever is advising Mr. Weiner on a run for public advocate or even mayor—given the disgraced congressman’s exit from politics—might want to reconsider what’s best for New York City Democrats. It would be best if the HUNGRY FOR REVIEWS I have been a Crain’s subscriber for many years, and I like the new format. However, I miss the restaurant reviews very much, as they’ve always been one of my first go-to’s, and I’m a fan of both Bob Lape and Gael Greene. I hope you will reconsider your decision to eliminate the column, as the publication just isn’t the same without it. —andrew rosenbaum 711 Third Ave., New York, NY 10017-4036 editorial phone: 212.210.0277 fax 212.210.0799 Entire contents ©copyright 2012 Crain Communications Inc. All rights reserved. ®CityBusiness is a registered trademark of MCP Inc., used under license agreement. PUBLISHED BY CRAIN COMMUNICATIONS INC. chairman Keith E. Crain president Rance Crain secretary Merrilee Crain treasurer Mary Kay Crain executive vp, operations William Morrow senior vp, group publisher Gloria Scoby group vp, technology, circulation, manufacturing Robert C. Adams vp/production, manufacturing David Kamis chief information officer Paul Dalpiaz founder G.D. Crain Jr. (1885-1973) chairman Mrs. G.D. Crain Jr. (1911-1996) FOR THIS WEEK’S QUESTIONS: Go to www.crainsnewyork.com/poll to have your say. CRAIN’S WELCOMES SUBMISSIONS to its opinion pages. Send letters to letters@crainsnewyork.com. Send columns of 475 words or fewer to opinion@crainsnewyork.com. Please include the writer’s name, company, address and telephone number. 10 | Crain’s New York Business | July 30, 2012 http://www.crainsnewyork.com/subscribe http://www.crainsnewyork.com/advertise http://www.crainsnewyork.com/events http://www.crainsnewyork.com/poll

Table of Contents for the Digital Edition of Crains New York - July 30, 2012

Crains New York - July 30, 2012
Contents
In the Markets
The Insider
Business People
Real Estate Deals
Opinion
Alair Townsend
Greg David
Small Business
Corporate Finance
Classifieds
For the Record
From Around the City
New York, New York
Source Lunch
Out and About

Crains New York - July 30, 2012