The Round-Up: Wednesday

Barring a state bailout, service cuts and fare hikes are a definite for MTA riders next year, with tolls rising to at least $2.50. [NY Times]

The State Health Department steps in to save the obstetric and pediatric departments at Cobble Hill’s Long Island College Hospital. [NY Times]

At a meeting, the Landmarks Preservation Commission strongly disapproved of General Growth’s redevelopment proposal for the South Street Seaport. [NY Times]

The Bronx’s Port Morris—one of the last industrial neighborhoods left in the city—is flourishing after decades of hard times. [NY Times]

Cuomo urges AIG and Citigroup to scrap bonuses for top executives. [DealBook]

MTA’s new budget proposal would significantly raise fares for disabled New Yorkers and express bus riders. [NYDN]

Nine people—including a Brooklyn court official and a sex tour operator—are indicted in a $1.4 million mortgage fraud conspiracy. [NYDN]

Sewage treatment union and the city continue to battle it out over wage increases. [NYDN]

Between the Bricks: Where there were once 20 bidders vying for the former Drake Hotel note, now there are only six suitors; Vornado still hasn’t closed on its 100,000 feet of 1540 Broadway retail space; Walgreen to unveil their new 17-story, 212-foot Times Square sign tomorrow. [NY Post]

New school zoning boundaries expected to be approved tonight would leave many parents who bought multi-millionaire dollar UWS condos to ensure their kids were enrolled at the highly-rated PS 199 stuck with lower-performing schools nearby. [NY Post]

Fifty-four nursing homes have been fined by the state for patient care violations, including Manhattan’s Terence Cardinal Cooke Health Care Center. [NY Post]

Citigroup stocks fall to their lowest levels in 13 years. [NY Post]

Freddie and Fannie’s continued struggles spur debate over their future. [WSJ]