Insider trading... again?

So as everyone knows, the White House made a deal with Kodak to produce pharmaceuticals under the Defense Procurement Act. Not surprisingly, there has been some more than suspicious activity concerning Kodak stock. Over the month of July, Kodak has traded at between 52k to 215k per day. Last Thursday and Friday it traded 85k and 75k shares respectively. On Monday, the day BEFORE the deal was announced, 1,645,000 shares were traded. Over the last year the average trading volume was just over 236k shares. That's a 7-fold jump. So who knew of the deal and who made these prescient trades?

Kodak CEO

a reply to: jtma508

I also want to know who in Congress bought shares.

The SEC will investigate and prosecute the Kodak executives but for Congress it's not illegal. They should still be outed publicly.

Us useless eaters in flyover country aren't worthy.

The percentage you're paying is too high priced
While you're living beyond all your means
And the man in the suit has just bought a new car
From the profit he's made on your dreams

But today you just read that the man was shot dead
By a gun that didn't make any noise
But it wasn't the bullet that laid him to rest
Was the low spark of high-heeled boys

Lyrics from "Low Spark of High Heeled Boys" by the band Traffic

originally posted by: AugustusMasonicus
a reply to: jtma508

I also want to know who in Congress bought shares.

The SEC will investigate and prosecute the Kodak executives but for Congress it's not illegal. They should still be outed publicly.

Why isn't it illegal for them? I have heard that before, but don't have any idea as to why that might be.

a reply to: network dude

Because the rules don't apply to them. Look at the investigation from this year, only one person was investigated beyond a cursory level and so far that has yielded nothing.

a reply to: AugustusMasonicus

but why is that OK? because they vote for the laws that govern them? That's bullsh!t.
And we have nothing we can do about this?

originally posted by: network dude
but why is that OK? because they vote for the laws that govern them? That's bullsh!t.
And we have nothing we can do about this?

Well, 'we' did, there was a law passed in 2012 that was supposed to stop this and it worked just as well as all those laws against murder and stuff.

a reply to: network dude

We have to bend over and take it, because Congress is better than us.

originally posted by: AugustusMasonicus
a reply to: jtma508

I also want to know who in Congress bought shares.

The SEC will investigate and prosecute the Kodak executives but for Congress it's not illegal. They should still be outed publicly.

None From KODAK showed up in SEC filing but I'm not sure the deadline to file. They're probably smart enough to have avoided it and will make their money on options now that the price jumped.

originally posted by: Ksihkehe
None From KODAK showed up in SEC filing but I'm not sure the deadline to file. They're probably smart enough to have avoided it and will make their money on options now that the price jumped.

We'd have to dig in more to see which of those trading/holding companies members of Congress may be investing with.

originally posted by: network dude

originally posted by: AugustusMasonicus
a reply to: jtma508

I also want to know who in Congress bought shares.

The SEC will investigate and prosecute the Kodak executives but for Congress it's not illegal. They should still be outed publicly.

Why isn't it illegal for them? I have heard that before, but don't have any idea as to why that might be.

Cause THEY make the laws! Great system, eh?

a reply to: network dude

It didnt used to be, but insider trading is illegal in congress. Problem is they only charge republicans. Just ask NY Rep Chris Collins.

originally posted by: AugustusMasonicus

originally posted by: Ksihkehe
None From KODAK showed up in SEC filing but I'm not sure the deadline to file. They're probably smart enough to have avoided it and will make their money on options now that the price jumped.

We'd have to dig in more to see which of those trading/holding companies members of Congress may be investing with.

I only meant the KODAK folks. The insider filing only applies to stakeholders and executive positions. The most recent for KODK are back in June.

Congress and WH staff who knows. They seem to like enriching their family too. I wish I could have faith that the SEC would do something.

a reply to: Ksihkehe

Gotcha.

It appears some of the execs at Kodak may have engaged in illegal activity. I'm also fairly certain, even though I don't have proof, that members of Congress did as well. You don't have that level of volume so far above the average without people being tipped off.

Democrats under clinton, I believe, passed some kind of legislation that prevents them from being charged with insider trading. In essence, they are allowed to use knowledge presented to them in the course of their duties because ignoring that knowledge is impossible and not being allowed to invest in a stock because of their job is not fair to them. Again, I am going on memory alone, but I believe that was one of things brought up in the hillary cattle futures investigations in '78 or '79 where she turned $1,000 into nearly $100,000 in about ten months.

originally posted by: Vroomfondel
Democrats under clinton, I believe, passed some kind of legislation...

Link?

a reply to: jtma508

Are we still allowed to call Insider Trading "White Collar crime", or is that now racist in 2020? Asking for a friend... hahaha

originally posted by: MichiganSwampBuck
Us useless eaters in flyover country aren't worthy.

The percentage you're paying is too high priced
While you're living beyond all your means
And the man in the suit has just bought a new car
From the profit he's made on your dreams

But today you just read that the man was shot dead
By a gun that didn't make any noise
But it wasn't the bullet that laid him to rest
Was the low spark of high-heeled boys

Lyrics from "Low Spark of High Heeled Boys" by the band Traffic

Highly under appreciated song and album.

Couple of things:

The execs can absolutely legally trade the stock if it’s outside the blackout period and in-line with what the company would allow - but the blackout period usually is more impactful to sales than purchases. Unlikely a C level exec suffers consequences... but think about it - should you be able to invest in the business you own or could go to jail for as a signer? Sure.

What’s funny is DOD contractors, FDA employees, etc. almost all have material employed securities restrictions. Many can’t own a full sector or sectors of the market, foreign securities/ADRs, or individual stocks in general.

Or the major accounting firms where If that firm audits a company like black rock, the accounting firm employees can’t own iShares - which is known as an issuer level restriction.

But, what you’re referencing does meet the definition of insider trading, in my mind. They have knowledge of what companies would benefit and may have even been complicit in the decision to select Kodak. Thus, possession of non-public information that could materially impact stock prices.

I’m curious who custodies all of the politicians assets or if they’re required to pre-clear their trades. If there is even a basic pre-clearance or restricted list process - and they still did this - it’s jail time.

originally posted by: AugustusMasonicus

originally posted by: Vroomfondel
Democrats under clinton, I believe, passed some kind of legislation...

Link?

As I said, I believe that was it. I am going on memory here so take it as you will. I am pretty sure it wasn't until 2011 that congress using insider knowledge was made illegal but, again if memory serves me correctly, I think there was an effort to reverse that law as well.