House Democrats to investigate federal loan to Kodak

Aug 5, 2020

Credit www.visitthecapitol.gov

House Democrats have launched an investigation into Eastman Kodak’s recently announced  $765 million loan from the federal government.

This comes on the heels of an investigation reportedly already underway by the Securities and Exchange Commission.

Bloomberg reports that House Financial Services Committee Chairwoman Maxine Waters is among Democrats who said they have sought all communications about the loan from the U.S. International Development Finance Corporation, which is the agency handling the financing.

The announcement about the loan came last week and Kodak stock rose sharply just prior to the actual announcement, prompting questions about the timing involved. Senator Elizabeth Warren (D-Massachusetts),  also called for the Securities and Exchange Commission to look at possible insider trading.

Congressman Tom Reed, a Republican from the Southern Tier, said on Wednesday that he is still very excited about the Kodak deal and its potential for bringing a lot of jobs to the Rochester area.

“So I hope we don’t get it tied up into politics and that what could be a very good outcome is mired and blocked as a result of political maneuvering,” Reed told reporters during a regular weekly conference call.

Senator Kirstin Gillibrand (D-New York), said that she would like to see a full investigation of the situation.

The Wall Street Journal reported this week that the SEC is looking at the circumstances surrounding the announcement of the federal loan by Kodak, but that the investigation is at an early stage and may not produce allegations of wrongdoing. Kodak issued a statement on Tuesday saying that it intends to fully cooperate with any potential inquiries.