While Trump has refused to heed calls to invoke the Defense Production Act for the manufacture of PPE and COVID-19 testing supplies, he suddenly gifted Kodak, the camera people, with a $765M loan for a not-yet established division to start producing ingredients for pharmaceuticals.
The Washington Post notes that the lender, U.S. International Development Finance Corporation, or DFC, “normally funds infrastructure and other projects in the developing world. But in an executive order signed in May, President Trump gave DFC new powers under the Defense Production Act to finance domestic health-care manufacturing needed to respond to the coronavirus crisis.”
In his comments about the award, Trump praised the “extraordinary leadership” of Kodak and said they have hired “some of the best people in the world to be taking care of that company and watching that company, watching over it.”
But Trump never said why Kodak, as opposed to any of the already-established pharmaceutical companies in the U.S., will make the best use of our $765 million.
If your Spidey senses are not already tingling with suspicion, get a load of what looks like massive insider trading on Monday, the day before Trump’s announcement:
Kodak stock volume has ranged from 52k to 215k shares per day since July 1. On Monday, the day before WH announcement, 1,645,000 shares traded hands. https://t.co/d0Q0gCbVqq
— Reid Wilson (@PoliticsReid) July 29, 2020
And the massive profits:
Kodak shares traded at $2.62 at the close on Monday. Now they’re at $42.88. Amazing what a $765-million “loan” from the taxpayers will do for shareholders. pic.twitter.com/fHyeMiMI50
— David Wessel (@davidmwessel) July 29, 2020
Kodak CEO James Continenza claims he has no idea what happened. He told CNBC’s Joe Kernan that the deal was “a pretty tight-kept secret” and “I couldn’t tell you what influenced that or didn’t.”
“It doesn’t look like it was a well-kept secret,” Kernen shot back.
If you don’t think that Trump and/or his family have somehow benefitted from this deal, then I’ve got a bridge in Brooklyn to sell you.
This is potentially a major scandal
Kodak stock is up EXPONENTIALLY since TUESDAY, when Trump announced that it was providing $750 million loan to help the company get into generic drugs
But there was a massive increase in trading volume on MONDAY https://t.co/wtfczuwNXO
— Judd Legum (@JuddLegum) July 29, 2020