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April 7, 2020, 9:57 a.m. EDT

SEC chairman says companies should disclose whether they plan to tap bailout programs

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By Ciara Linnane

Public companies should make disclosures to shareholders if they are planning to tap coronavirus-related bailout funds, according to the head of the Securities and Exchange Commission. Jay Clayton, the agency's chairman, told CNBC that investors are still thirsting for information about the companies of which they are part-owners, and companies should be telling them whether they need capital and how the virus is impacting their business, according to a Dow Jones Newswires report. The need for bailout money is sensitive information, he said. The SEC has allowed companies an extra 45 days to file updates on how the virus is impacting their operations. Clayton has stressed the need to update investors on liquidity positions. Many companies across all sectors have said they are tapping credit lines, suspending share buybacks and taking other measures to conserve cash during the crisis.

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