Navarro lashes out at ‘stupid’ Kodak executives amid loan insider trading investigation
White House trade adviser Peter Navarro tore up Eastman Kodak as part of an investigation into whether executives illegally disclosed information about a federal loan to manufacture pharmaceuticals.
“What happened at Kodak was probably the dumbest executive decisions in company history,” Navarro said in an interview Monday with CNBC.
“You can’t fix stupid. You can’t even anticipate this level of stupidity.
The Securities and Exchange Commission (SEC) is investigating whether Kodak executives violated insider trading laws by disclosing a $ 765 million loan from the federal government. As the loan was announced on July 28, the company’s stock price soared the day before as the volume of Kodak shares traded. drastically increased.
The American International Development Finance Corporation announced on August 7 that he was suspending the loan to Kodak following the announcement of the SEC investigation and the announcement of an internal investigation at the company earlier today.
The Kodak loan was granted under the Defense Production Act, a 1950 statute giving the president broad powers to order American companies to manufacture specific products in times of national crisis. President TrumpDonald Trump Maria Bartiromo defends report: “Keep trashing me, I’ll keep telling the truth” The Memo: Center strikes back Republicans consider Nashville crisis to win House seat MORE invoked the law in April to address shortages of medical products and equipment needed to fight the coronavirus pandemic and tasked Navarro to oversee its use.
“We loved this project,” said Navarro, who called for increasing US production of pharmaceuticals to reduce the country’s dependence on imports, especially from China.
“We don’t know why it happened or what they did. Let the investigation unfold, “he continued.” We are not looking in the rearview mirror.
Kodak, as a publicly traded US company, is required to carefully disclose information that will significantly affect the price of its shares. The Wall Street Journal reported that Kodak shared the news of the loan with reporters in Rochester, NY, its headquarters, the day before the government’s official announcement without specifying that it could not be released until then.
A Kodak spokeswoman declined to comment on Navarro’s criticism.