Investors at the gates: MMF reforms fail the Covid test

After MMF rescues return, regulators urged to rethink rules on gates and sponsor support

In mid-March, as major US cities were being put on lockdown, the sponsors of some prime money market funds were desperately trying to avoid doing the same to investors.

Over the course of three days, from March 18 to 20, BNY Mellon and Goldman Sachs bought $4 billion of assets from MMFs overseen by their asset management arms, which were seeing heavy outflows. Such inter-affiliate bailouts face barriers under post-crisis rules. But this was done with the full blessing of regulators.

The US