There is a certain point in writing about the Trump Administration where you just automatically wonder what’s corrupt with whichever topic you’re writingon . It appears the Kodak Pharmaceuticals deal, as much as I’d like to think it’s a wise move to take advantage of a company’s expertise in chemistry and chemical engineering, may not be on the up and up, and Heather Cox Richardson has a useful summary of the latest disappointing developments:
This may be a very sad ending for a hallowed corporate name. Someone should check to see if Eastman’s tomb is vibrating from the rotations he’s executing.
The Securities and Exchange Commission (SEC) is investigating potential insider trading over the late July launch of Kodak Pharmaceuticals, a new branch of the old camera and film company intended to begin the process of bringing the production of drugs back to the United States.
Under the Defense Production Act, the Trump administration provided a $765 million loan to support the launch of Kodak Pharmaceuticals. The deal shot Kodak stock upward by more than 2,757%. But there was suspicious activity around this deal. The day before Trump’s announcement of it, the Eastman Kodak Company gave its CEO, Jim Continenza, 1.75 million stock options. Indeed, since May, when talks with the administration about manufacturing the ingredients for pharmaceuticals began, Kodak handed out 240,000 stock options to board members.
Kodak says the timing of the options was a coincidence: the board’s compensation committee meeting happened to fall on the day before the announcement. When asked by a reporter about what had happened at Kodak, Trump says he “wasn’t involved in the deal.” This afternoon, the co-director of the SEC’s Division of Enforcement Steve Peikin announced he is stepping down. He did not give a reason.
I feel a little like I’m just a spectator at a power politics festival. The goal is for each contestant to put as many dollars as possible into their personal bank accounts, without regard to morality, ethics, or good governance, corporate or political. People responsible for the aforementioned disregardments, not having a role in this contest, can be seen leaving the field of combat, and will be later available for interviews at the kiddy ice cream stand around back.
PS Don’t let your kids have any ice cream. Unless you don’t like them. It’s full of … oh, Corporate is telling me not to say.
While honestly, truly, I want this deal to be legit, I think the Trump quote is a strong sign that it’s not:
… Trump says he “wasn’t involved in the deal.”
Yet, Trump announced it with great pride just a couple of days ago. Trump has never seen a successful deal that he hasn’t tried to horn in on; contrariwise, he disclaims knowing anything about a deal when it’s in the process of being revealed as corrupt.
The omens are poor.
