BUILDING UP: The Los Angeles City Council has unanimously approved the controversial development of two skyscrapers that will tower over Hollywood’s famed Capitol Records building. New York developer Millennium Partners plans to build two towers of 39 and 35 stories with more than 1 million square feet of office, retail, hotel and high-end apartment space. The towers will be built on about 4 acres of parking lots surrounding the 13-story Capital Records tower.

BANK MERGER: Century City’s PacWest Bancorp plans to buy CapitalSource Inc., the downtown L.A. parent of industrial lender CapitalSource Bank, in a $2.3 billion cash-and-stock deal. The combined institution will be the fourth largest bank in Los Angeles by assets, behind only City National Bank, East West Bank and OneWest Bank. It’s the latest and largest acquisition for PacWest, which recently purchased Westlake Village’s First California Bank and has acquired a handful of other financial institutions over the past few years.

BUYOUT: Thomas Properties Group Inc. has struck a deal with longtime investment partner California State Teachers’ Retirement System that would allow Thomas to take full ownership of downtown L.A.’s City National Plaza and other properties now owned in a joint venture. Thomas formed the partnership with CalSTRS in 2003 to acquire and reposition the former Arco Plaza. It later acquired five commercial properties in Houston and northern Virginia.

OUT: Jeffrey Deitch has resigned after three years as director of downtown L.A.’s Museum of Contemporary Art. Deitch came from the New York gallery scene and was a lightning rod for controversy at Moca, which was beset with financial problems. He was criticized for overemphasizing pop culture. Deitch, who had two years left on his contract, will stay on as the museum’s board searches for a replacement; he also will continue to oversee the institution’s ongoing $100 million endowment campaign.

NEW MUSEUM: Guess Inc. co-founders Maurice and Paul Marciano have bought the Scottish Rite Masonic Temple on Wilshire Boulevard for a reported $8 million, and plan to turn it into a private art museum for their collections. The brothers plan a renovation of the 90,000-square-foot facility, which opened in 1961. The Marcianos reportedly plan occasional public exhibitions at the facility.

CANCELED: Univision Radio Network has dropped L.A.-based morning radio talk show “Piolín por la Manana,” hosted by Eddie “Piolín” Sotelo. No reason was given, but the nationally syndicated show, heard locally on KSCA-FM (101.9), had been falling in the ratings. Piolín, one of the nation’s best-known Spanish-language personalities, was known for mixing wacky comedy with guest interviews on social issues such as poverty and immigration reform.

NEW LABEL: Santa Monica’s Universal Music Group has signed a partnership deal with Def Jam co-founder Russell Simmons, film director-producer Brian Robbins and hip-hop music executive Steve Rifkind to launch All Def Music, a label to sign, develop and promote artists on YouTube.

MORTGAGE CASE: The U.S. Consumer Financial Protection Bureau has sued Westlake Village billionaire David Murdock’s Castle & Cooke Mortgage, accusing the Salt Lake City lender of improperly paying bonuses to employees for steering home buyers toward higher-interest loans. The CFPB claims Castle & Cooke, as well as two of its senior officers, violated the Federal Reserve’s loan originator compensation rule. The company has not commented on the lawsuit.

EXPANSION: Ryland Group Inc. said it will acquire the assets of Philadelphia homebuilder Cornell Homes. The Westlake Village homebuilder and mortgage finance company said it would retain all of Cornell’s employees, with Cornell’s president, Greg Lingo, becoming president of Ryland’s Philadelphia division. The deal gives Ryland 12 active communities and a project in development.

APPROVED: Stockholders have approved a $1 billion acquisition of Camarillo solar equipment manufacturer Power-One Inc. by Swiss engineering company ABB agreed to buy Power-One. The Zurich company will pay Power-One shareholders $6.35 a share. The transaction was expected to close by the end of last week

EARNINGS: Avery Dennison Corp. reported second quarter net income of $68.8 million, up 10 percent from the same period a year earlier. Revenue rose 4 percent to $1.55 billion. ... BBCN Bancorp reported second quarter net income of $22.7 million, up 17 percent. Revenue rose 4 percent to $72.7 million. ... Wilshire Bancorp Inc. reported second quarter net income of $11.5 million, up 94 percent. Revenue rose 4 percent to $34.1 million. … Reliance Steel & Aluminum Co. reported second quarter net income of $81 million, down 27 percent. Revenue rose 11 percent to $2.45 billion. ... Health Net Inc. reported second quarter net income of $33.5 million, down 72 percent. Revenue fell 4 percent to $2.7 billion. … Skechers USA Inc. reported second quarter net income of $7 million, compared with a net loss of $1.8 million in the same period a year earlier. Revenue rose 11 percent to $428 million.

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