Western Savings & Loan Assn. has entered...

Western Savings & Loan Assn. has entered into an operating agreement with the Federal Home Loan Bank Board, under which Phoenix-based Western will implement plans to improve its management and its interest rate risk, asset classification and securities trading policies. Western has also agreed to obtain authorization from the FHLBB for certain significant transactions, such as the payment of dividends on its capital stock and the acquisition, making, sale or modification of loans in excess of $5 million. Western expects to report after-tax losses of about $125 million for the fourth quarter and $122 million for fiscal 1988.