This concept, to which Americans feel a very deep-seated attachment, is reflected in the Fourth Amendment to the Constitution, which assures “The right of the people to be secure in their persons, houses, papers, and effects, against unreasonable searches and seizures....” For the government to intrude on one’s privacy is in a very fundamental sense a deprivation of freedom.
The objectives of our PDCF monitoring program are: (1) to establish the basis for an informed judgment by the Federal Reserve of the liquidity and capital positions of the primary dealers accessing the PDCF; and (2) to minimize the risk that the availability of financing under the PDCF undermines the incentives for the consolidated entity to manage capital and liquidity to levels appropriate for a sustained period of market disruption.