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Federal agency finds no wrongdoing in Kodak loan: report

EconomyDec 06, 2020 07:15PM ET
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© Reuters. The Kodak logo is shown on a booth during the 2017 CES in Las Vegas

By Imani Moise

(Reuters) - A federal agency found no wrongdoing concerning the stalled U.S. government loan to Eastman Kodak Co, the Wall Street Journal reported on Sunday.

The inspector general for the U.S. International Development Finance Corp (DFC), which was administering the loan, told Democratic lawmakers he found no evidence that agency officials had any conflicts of interest in the plans, the report said.

It is unclear whether the agency will now move forward with the loan.

Representatives for Kodak and DFC did not immediately respond to a request for comment from Reuters.

Shares of the once iconic photography company surged in September when an earlier review by law firm Akin Gump, also cleared company executives of wrongdoing.

Kodak stock has swung wildly since July when it announced that it would receive a $765 million loan to help produce pharmaceutical ingredients for potential COVID-19 treatments, but the process ground to a halt after Democratic lawmakers raised concerns about potential insider trading around the time of the announcement.

The day before the announcement which catapulted the stock to $30 a share from $2 over three sessions, there was heavy trading volume. Executives earned a windfall as the shares jumped more than 1,000% in the weeks after the news, partly due to retail investors on the Robinhood trading app piling into the shares.

However, reports of probes into the deal by federal agencies including the Securities and Exchange Commission have sunk the stock back below $10 a share.

Kodak stock finished last week's session at $7.53 a share.

Federal agency finds no wrongdoing in Kodak loan: report
 

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Comments (6)
Joel Schwartz
Joel Schwartz Dec 06, 2020 9:28PM ET
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Let’s audit the SEC themselves. I think they’re on the take at this point.
Chris Sundo
Chris Sundo Dec 06, 2020 8:09PM ET
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Probably all to protect Trump's *******who facilitated this deal to an old friend
Robert Cox
Robert Cox Dec 06, 2020 8:09PM ET
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My thoughts exactly. The head of the brand new group with a mandate of investment in foreign developing nations is a Trump appointee.
Chris Sundo
Chris Sundo Dec 06, 2020 8:06PM ET
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IRS/SEC are big sleepy heads ..
Robert Cox
Robert Cox Dec 06, 2020 7:55PM ET
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I'm confused. The loan was withdrawn because the company was under investigation for insider trading by the SEC, not conflicts of interest between the government and Kodak. How does the agency wringing its hands solve anything?
Jeremy Sklenar
Jeremy Sklenar Dec 06, 2020 7:32PM ET
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Well that proves the INVESTIGATORS were part of the scam.. Kodak will not be part of the Vaccine. Period just another back alley bail out of a failing company..
Sangwuk Ji
Sangwuk Ji Dec 06, 2020 6:08PM ET
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yeah!!! congrats kodakers!!!!!!!!!!!!!!!!!!!!
 
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