By Ben Winck
- The Securities and Exchange Commission is investigating trading of Eastman Kodak shares before the public announcement last week of a $765 million government loan to make drug ingredients, The Wall Street Journal reported on Tuesday.
- Kodak shares spiked as much as 2,190% in the two days after the announcement on July 28. It also gained as much as 26% the day before information about the loan was made public.
- In a letter on Monday, Warren urged the SEC to investigate individuals and corporate entities making large trades of Kodak stock before the announcement, as well as whether anyone inside Kodak shared information about the loan before it was made public.
- “This is just the latest example of unusual trading activity involving a major Trump administration decision,” Warren wrote.
The Securities and Exchange Commission is investigating the trading of Eastman Kodak stock after its price surged last week on news of a $765 million government loan, The Wall Street Journal reported on Tuesday.
The loan, meant to aid Kodak in producing drug ingredients, was announced last Tuesday, July 28. After the announcement, Kodak stock leaped as much as 350%. Shares soared even higher on Wednesday, at once point reaching a two-day gain of 2,190%.
But the stock gained as much as 26% the day before the announcement, raising questions about whether insiders traded on information about the government loan.
The investigation is at an early stage, and it’s unclear whether allegations of wrongdoing will be raised, a source told The Journal. The agency is looking into how Kodak handled the disclosure of the government loan