BANKING

Fed’s L.A. Branch Passes Audit: An independent auditing firm found no irregularities in the handling of currency and coins at the Federal Reserve Bank of San Francisco’s branch in Los Angeles. The General Accounting Office, which recommended the audit, found evidence that staff members at the Los Angeles branch altered currency reports to make them agree with the bank’s cash on hand. However, the audit by Coopers & Lybrand agreed with the Fed’s assertion that the branch “maintained an effective internal control structure over financial reporting for its coin and currency as of Aug. 31, 1996.” The L.A. branch is the second-largest in the Fed system, handling $80 billion in cash a year.