Sergey Kadinsky
Written Works
Maspeth Expects to Weather Economic Crisis
September 2008
This feature piece was submitted to local Queens newspapers.
It was also used in my Craft of journalism class at the CUNY J-School.
The businesses of Maspeth have a reputation, built on ethics and community involvement. They hope this can help them survive the current economic crisis. “We give back to the community. We’re not here to make money, but also enhance the lives of the residents,” said Thomas K. Rudzewick, the senior vice president of the Maspeth Federal Savings.
Maspeth is known for its many civic organizations
In spite of the growing unease about the economy, the feeling in Maspeth remains positive, even among the bankers and realtors who bear the brunt and blame for the nation’s financial woes.
The recent plummet of stocks has resulted in the collapse of the banking superpowers Bear Stearns, Lehman Brothers, mortgage giants Fannie Mae and Freddie Mac, and the insurance staple AIG. Yet the local bank appears to chug along smoothly.
The bank was founded in 1947, but as its “Mespatches Indian” logo suggests, the ties are stronger than its age. While many neighborhoods in New York are dominated by international bank branches, Maspeth Federal Savings has embraced its reputation as a neighborhood bank. It has only six branches and a loan center, with no plans for new branches.
“We’re not looking to saturate the market as a corporate giant,” said assistant vice president David Daraio
At the same time, its reserve assets have risen by $146 million since 2001, currently totaling $374 million.
As a neighborhood, Maspeth has a distinct identity of a small town within view of Midtown Manhattan. At the intersection of Grand Avenue and the Long Island Expressway, a large sign welcomes travelers to the neighborhood. On the sign, an array of medallions includes the local chapters of the Lions, Kiwanis, and the Knights of Columbus.
The organizations sponsor a variety of charitable activities, and the bank often participates in the act. A five-mile run, a classic car show, and a flea market are only a sample of the bank’s deep reach into the neighborhood’s fabric.
“We’ve just added a new community activity, Smile On Maspeth Day,” said Daraio. Scheduled for Oct. 5, the children’s themed event will take place on the bank’s parking lot.
Maspeth’s success is a result of its business practices. It shuns subprime loans, and takes a conservative stand on handing out loans. “There are strict criteria for lending. The applications are reviewed by our board members, who are all longtime residents,” said Rudzewick.
Besides individuals, developers also rely on banks as a source of funds for housing. Here too, Maspeth stands out. While many neighborhoods in Queens have witnessed out-of-context residential developments, and chain stores, Maspeth’s skyline and small businesses have remained stable for decades.
“We have guidelines for development. It must conform to the existing neighborhood,” said Rudzewick. “We believe in keeping the neighborhood secure with progressive growth.”
The population of Maspeth is mostly white, largely of Italian, Irish, and Polish descent. The bank looks to the demographics as a source of support. “Our events have Irish or Polish Music. “They are family events,” said Rudzewick.
Capitalizing on current trends, the Smile on Maspeth Day will have a Hannah Montana tribute. It will also have “Billy the Pirate” helping children open their own Young Savers accounts, ensuring a new generation of loyal customers.
A major coordinator of neighborhood events is the Maspeth Chamber of Commerce, headed by James F. O’Kane. The organization comprises of 120 businesses and individuals. Alongside the bank, many of the local businesses have joined as sponsors of the classic car show, to be held in the bank’s lot. The event will benefit the Maspeth town Hall, a local community center. With sponsorship costing $100, even a struggling business can get its name out as a supporter of the community.
O’Kane does not expect the economy to affect local charities. “The lodges often work together,” said O’Kane, who is a member and past leader of the Loyal Order of Moose and the Kiwanis. “They use sports to attract new members. Bowling, darts, softball.”
With a stable population, Maspeth has experienced few recent foreclosures, and O’Kane ensures that his clients are reliable. “Before taking them out to see a house, we find out if they can afford it.”
Like the architecture, diversity has been arriving to Maspeth in a gradual manner. “We have the Polish being priced out of Greenpoint; and Asians from south Elmhurst,” said O’Kane.
Not having its own subway line makes Maspeth slightly less expensive than its surrounding neighborhoods. Turnover is low, O’Kane said, because few people are moving out of Maspeth.
For the most part, local business owners expect overall stability for Maspeth despite the economic turndown, and local residents agree.
“People who were born here want to stay here,” said Nancy D’Errico, 59. “What do we call them- Maspethians?,” asked Patricia Skiva-Mieczkowski. “We support the local businesses, the people rely on them.” Looking at the roster of community event sponsors, it appears that the neighborhood does too.