Wednesday morning headlines

Market back up: Guess there's no new bank plan to be announced today. The Dow has been in the plus side, but it’s pulling back.

Feeling the heat: Eight of the nation’s top bankers are testifying before the House Financial Services Committee this morning on how exactly they're using the bailout money. DealBook is live-blogging the event.

Budget deal nearing: The latest proposal by Democratic leaders would temporarily increase sales taxes by one cent (boosting the overall sales tax rate in L.A. County to 9.75 percent), and motorists would pay 12 cents a gallon more for gasoline. Also, vehicle license fees would nearly double. The Dems need at least three Republicans each from the Senate and Assembly. (LAT)

Anger at Motion Picture home: The same Motion Picture & Television Fund that's ready to shut down its Woodland Hills nursing home - and dump about 100 elderly residents - authorized expensive new executive offices and a gym and aquatic center. From the LAT:

Fund officials reject the criticism and say that the building projects and executive compensation levels are separate and did not draw upon or affect resources dedicated to the operation of the hospital and nursing home. "If we didn't do this now, the entire endowment would have been wiped out in four to five years," said Frank Mancuso, who heads the fund's corporate board. But some family members believe that the fund's board has misplaced its priorities, leading it to emphasize bricks-and-mortar projects at the expense of fundamental care to those most in need.

LAX settles dispute: As part of the agreement, Los Angeles World Airports will pay United $35 million; in return, the airline will relinquish four gates at Terminal 6, freeing up space that could be used by other airlines. Both sides also settled issues involving space at Terminals 7 and 8. (Daily Breeze)

Mervyns reborn?: John Morris, son of the department store chain's founder, Mervin Morris, is buying the defunct retailer's name. Morris, who runs a private equity and real estate investment company, says "We strongly believe we have a very strong, loyal base of families in the Western states that would support Mervyn's." No specifics on what he has in mind. (DJ)

USC buys hospitals: Ending a three-year dispute, the university will acquire USC University Hospital and USC Kenneth Norris Jr. Cancer Hospital from Tenet Healthcare. Purchase price is $275 million. Both sides had sued each other – something about making improvements to the facilities. (LAT)

Concert company gets ready: The newly created combo of Live Nation and Ticketmaster has hired Hillary Rosen, a top recording industry lobbyist, to help with the antitrust strategies stemming from the merger. (NY Post)

Lions Gates loses investors: And with it, an unexpected shortfall of $65 million that the movie company will have to make up. That could play havoc with its slate of films scheduled for release this year. The company is already coming off a $93.4 million third quarter loss. (LAT)