Western Federal Corporate Credit Union has received a favorable report from a Big Six accounting firm that the liquidity center hired to review its investment operations.
"Overall, we found that Wescorp's investment activities were comprehensive and complete, management was knowledgeable and informed, and all significant risks were addressed," Coopers & Lybrand said in its report to Richard Johnson, chief executive of the country's largest corporate credit union.
Mr. Johnson called for the review earlier this year to soothe members' concerns about potential problems at Wescorp in wake of the failure of Capital Corporate Federal Credit Union.
The firm did suggest some improvements.
Coopers & Lybrand recommended that the San Dimas, Calif., institution fine-tune its quarterly modeling techniques and add individual authority investment purchase limits to its policies.
Other proposed changes include purchasing a new system to produce management, accounting, and reporting information, and obtain a committed line of credit to strengthen further the $12 billion-asset institution's liquidity position.
Wescorp spokeswoman Tena Lozano said management has submitted a plan to the board on following some of the auditing firm's suggestions.