Not only does Goldman’s business that trades bonds, derivatives, currencies and commodities bounce around too much for shareholders’ tastes, it is opaque. Bank executives are often loath to talk in detail when it underperforms.

Goldman also made strategic mistakes in this business in recent years. It focused too heavily on hedge fund clients, something it is trying to fix by reaching out to different types of customers. Its commodities business, which it clung to in the face of political pressure, has been a drawn out disappointment.

And Wall Street traders ought not to get too excited about the prospects of deregulation. As some rules get loosened, others may get toughened up, like those that would liquidate a troubled Wall Street firm rather than bail it out. While the government may not be winding down any large banks anytime soon, the diminished likelihood of bailouts can force up the cost of borrowing for firms like Goldman. This, in turn, may steer them away from riskier businesses like trading.

Investors still seem to doubt Goldman’s desire to adapt to a much more ordinary future. This is revealed in a comparison of Goldman and its rival, Morgan Stanley.

Goldman’s return on shareholder equity, a closely watched metric that quantifies the profits generated on shareholders’ money, has been higher than that of Morgan Stanley in recent years. But investors seem just as enthusiastic about the future of Morgan Stanley. Its stock trades at the same multiple to shareholders equity as Goldman’s. Why? Morgan Stanley has arguably done more than Goldman to diversify away from trading to businesses, like wealth management, that are more stable.

— Peter Eavis

And then there was one.

David M. Solomon is Goldman Sachs’s heir apparent.

The Wall Street firm said Mr. Solomon would serve as its sole president and chief operating officer, setting him up as the potential successor to Lloyd C. Blankfein, the investment bank’s longtime chief executive.

Context

Mr. Solomon and Harvey M. Schwartz were seen as the favorites to eventually replace Mr. Blankfein when they were named co-chief operating officers and presidents in December 2016.