In New York, anything bad (7)
I believe the answer is:
naughty
'bad' is the definition.
(naughty means badly behaved)
'in new york anything' is the wordplay.
'in' indicates putting letters inside.
'new york' becomes 'ny'.
'anything' becomes 'aught' (I've seen this before).
'ny' enclosing 'aught' is 'NAUGHTY'.
(Other definitions for naughty that I've seen before include "Disobedient, child perhaps" , "Badly behaved, mischievous" , "Badly-behaved" , "mildly indecent" , "Mischievous - improper" .)