after a number of years, he moved alhis retirement savings to u.b.s., more than $350,000.d then in 2011, his broker made him an offer. he said, "i can give yo a collateral loan for a million dolls." >> sullivan: he said, "i'm going to give you a million-dollar loan"? a >>oan, and, "you invest that money in more bos, puerto rican bonds, and then..." >> to buy more bonds. >> buy more. >> sullivan: and buy more bond >> that's right, and i said, "i don't think i can handle that. let's go to half a m." >> sullivan: what were your thoughts when he proposed this idea to you? >> that this is something unique. i really made it for my retireme, and this is great. >> sullivan: what ram lamb says he didn't know is that u.b.s. had invested his money into special bond funds that were riskier than what's allowed on the mainland. and, thainside the bank, concerns were growing that those funds were in trouble, yet u.b.s. kept pressing brokers to sell them... >> there was some hardline tactics to sell the funds. you know, like, "go out and get them. let's go.to you goell these funds." they

c >> sullivaacete complained to u.b.s. managers, but heard nothing.d then, finally, after nearly a year, he got a visit from u.b.s. compliance officers in the u.s. heays they called him into a conference room and said g ey'd found no evidence that brokers were misusans. >> and i jumped up and i said, "you're kidding, right?" you know, this... this... you know, "this is a joke?" and i said, "what did you do?" and one of them, she was very..e and i remember words, you know, said, "what would you have done?" >> sullivan: she said that to you? bi and i stood up and i told her, "look at thaccounts and follow the money. that's all you have to do. >> sullivan: why do you think the bank would want to turn a blind eye to something like this? >> because it was profitable and i was the one that was... how... in spanish, we say, "arruinando la fiesta." i was the one that was spoiling their party. >> sullivan: that party ended in 2013. there were growing concerns that the government couldn't pay back all the bond debt it had taken on. the value of pueo rican bonds

geoffrey yu, the chief investment officer at u.b.s.ela merkel diverted a collision crisis with the migration deal. we'll talk about europe. this is bloomberg. ♪ what's a gig of data? well, it's a whole day's worth of love songs. 300 minutes of baby videos. or, it's a million chat messages. a gig goes a long way. that's why xfinity mobile lets you pay for data one gig at a time. and with millions of wifi hotspots included, you'll pay less for data. it's a new kind of network designed to save you money. click, call or visit a store today. ♪ francine: a trade dispute, icron cut off, the latest moves in the trade for. turnaround for china's currency. , germany'sress social democrats moving to back the migration deal. we will speak to the migration commissioner. good morning. this is "bloomberg surveillance." his familyff for barbecue. i can see him flipping the burgers. reminder, it is the fourth of july. thank you for watching us. stock markets are closed today, but futures are trading. let's get straight to bloomberg first word news. adm

regulation framework to enables us kind of technology and businesses although you have a background at u.b.s. working with high net worth individuals it seems they might have some roadblocks to investing in crypto currency i mean one there are so many out there how do you choose and to it's a really technical space how are they doing this that's true actually you see there are a lot of exchanges for cryptocurrency spirit this is not the focus of business but you're absolutely right to. to to invest in crypto currency is today. in a smart way you actually need a technical knowledge and pretty deep one you need to understand the difference and protocols orders that you know why. this protocol is better than zero as of on the scale ability interoperability and so on so for most people this is not possible so most people just read what other people say this is you know a lot of votes but you leeson rate it's a good development you know stories involve and we see some kind of institute instead institutions structures come into place like crypt. funds rate as there are funds that that have teams t

government has concluded that it is highly likely that russia was responsible for the act against and u.b.s. . the can be no suggestion of business as usual in relation to our interaction with russia mr speaker this action has happened against a backdrop of a well established pattern of russian state aggression.

found in amesbury thirteen kilometers from saul's we that's where the english town where surrogate and u.b.s. clipart were attacked with a nerve agent in march the latest case has been declared a major incident but there is not believed to be a wider risk. well you know. some of the life laureate will.

regulation framework to enables us kind of technology and businesses although you have a background at u.b.s. working with high net worth individuals it seems they might have some roadblocks to investing in crypto currency i mean one there are so many out there how do you choose and to it's a really technical space how are they doing this that's true actually you see there are a lot of exchanges for cryptocurrency spirit this is not the focus of business but you're absolutely right to. to to invest in crypt occurrences today in this. more to way you actually need a technical knowledge and pretty deep one you need to understand the difference and protocols orders that you know why why is this this protocol is better as in the eyes of on and scale ability interoperability and so on so for most people this is not possible so most people just read what other people say this is you know a lot of votes but you listen rate to good development is that you know stories involve and we see some kind of institute instead institutions structures come into place like crypt. funds rates as there are funds

assembles there is u.b.s. in the u. u.s. factory in spartanburg prizes on those vehicles will go up seven percent that's due to the higher tariffs that china is imposing on u.s. products since the beginning of july w. manufacturers' more than one hundred thousand vehicles in its u.s. factory last year which were exported to china. financial correspondent paul blitz joins me now from the front with the stock exchange paul is b.m.w. the only car maker being drawn into this u.s. china trade conflict. now gary hart of course now the competition is hurting us well especially diam lerner. company has already lowered its projection. in. june because also producing s.u.v.s in the u.s. but b.m.w. is the first to pass a bill of forty percent tariffs to the customers only part of it but it does pass it on and s.u.v.s made by b.m.w. are very popular popular in china the company has already reacted by shifting some of the production from the u.s. to china of its smaller models and what we can say for sure is that the number of one hundre

territories investor protection act closes a huge loophole that allows u.b.s. and other financial firms operating in puerto rico and in any other u.s. territory to rip off millions from ordinary investors. my question to you is, when can we expect the sec to begin implementing this badly needed provision? >> thank you, this is the provision that removes the exemption from the act. we are going to move forward with that. you characterized it correctly. it does close what could be characterized as a loophole. it should be done. >> i am very excited to hear that. i am also concerned that the position of advocate for small business capital formation has not been filled. do you see any value in that position? >> i am disappointed that we have not yet filled that osition. we have employed a search firm to help us find the right person for that. why my disappointed? i think that -- why am i isappointed? that voice should be a permanent voice in the work we do. >> when do you expect to fill that position? >> i would like to fill it tomorrow. we have some candidates tha