In a May 29, 2014 white paper, Blackrock responded strongly to the Financial Stability Oversight Council’s (FSOC) 2014 Annual Report that raised concerns about asset managers and securities lending. In particular, Blackrock’s paper takes issue with FSOC’s assertion that indemnity provided to lending clients by asset managers acting as securities lending agents created extra risk because asset managers do not face the same capital and liquidity requirements as their bank counterparts. In response, Blackrock said that, “borrower default indemnification is an established practice in securities lending, provided by the majority of lending agents to a variety of clients.” Further, because all securities loans are fully collateralized, lending agents’ exposure for borrower default indemnification is quite limited.