With 2011 drawing to a close, it's the ideal time to take stock of where our economy is headed; look at how banks and other financial institutions are faring; and how we transitioned to a multi-faceted firm that is well positioned to meet the demands of today's market dynamics.

For much of 2011, the economy remained sluggish, with GDP growing only 0.4% in the first quarter and 1.3% in the second. Although Q3 saw GDP jump to 2.5%-well ahead of analysts' expectations-4% to 5% expansion is ideal following a recession. GDP aside, there are a number of additional challenges that have derailed growth, including volatile employment (the jobless rate is still stuck at around 9%) and the continued weak performance of the housing sector.

However, high unemployment and a lackluster housing market are not the only components that have slowed overall economic growth. The commercial and industrial markets have also had their fair share of problems. Although most banks and financial institutions now know which of their loans flatlined and recognize that the underlying assets are potentially deteriorating, one of their most pressing issues is whether other types of still-solid loans could become nonperforming.