The Securities and Exchange Commission has launched an investigation of the trading in shares of Eastman Kodak Co. before and after the news last week of a $765 million government loan to help it make drugs at its U.S. factories, the Wall Street Journal reported Tuesday, citing people familiar with the matter. The loan news caused Kodak's shares to climb to as high as $60, before falling back to $15 on Monday, in massive trading volume. The stock had already moved 25% the day before the news was officially disclosed. Executives with stock options, including some awarded the day before the loan became public, were sitting on big paper gains. Kodak shares were down 1.3% Tuesday, but are up 215% in the year to date, while the S&P 500 has gained 2%.
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