Shares of Kodak soared 59% in premarket trading on Monday, after federal regulators found no wrongdoing in the process which created a loan to the company, according to Wall Street Journal. The report claims the inspector general of the U.S. International Development Finance Corp., which orchestrated the $765 million dollar loan in the first place, said they found no evidence the agency had any conflicts of interest in the plans, and found no wrongdoing on the part of the agency’s officials. This all coming after they reported the case to Senator Warren, citing unusually high trading volumes of Kodak shares ahead of the loan’s public announcement.
Kodak’s stock went ape-sh*t in July after news broke that the producer of chemicals used in photographic film secured the government loan to make pharmaceutical ingredients. Whereupon the SEC swiftly launched an investigation into the trading of the stock before the news was released. Kodak’s stock has rallied 61.9% year to date, while the S&P 500 has advanced 14.5%.
The DFC halted Kodak’s loan in August, reporting via Twitter: “recent allegations of wrongdoing raise serious concerns.” The senator doubled down on her request with a letter to Michael Horowitz. Warren urged the committee, who supervises emergency spending of pandemic-related funds, to get to the bottom of the “botched” loan.
“The net result has been a waste of time, money, and resources, no progress whatsoever in the effort to mitigate the coronavirus disease 2019 pandemic, and a host of questions about how and why the Trump Administration is handing out taxpayer funds and who is benefiting from these expenditures,” Warren wrote in the letter.