He declined to discuss the IPO of Saudi Aramco, the world’s largest oil producer, because it is an active transaction. The bank is a global coordinator on Aramco’s initial public offering, which could become the world’s biggest ever. Saudi Arabia is aiming for a valuation of between $1.6 trillion and $1.8 trillion, according to people familiar with the matter. But analysts at banks working on the deal offered wildly diverging estimates.

Aramco’s IPO was delayed just days before an expected October launch after doubts re-emerged about the $2 trillion valuation Prince Mohammed initially placed on the energy giant. He caused something of a shock in 2016 when he announced the plan and gave the lofty estimate, which would make Aramco almost twice the size of Apple Inc., the world’s biggest company by market capitalization.

“Different people will have different valuations and parameters,” Solomon said. Still, “when you run an IPO process and you get an IPO process to the point where a valuation range is set and then you are actually selling securities to investors, I don’t think it’s that hard to get to a pretty narrow range for what the market expects and where buyers and sellers can meet.”

The CEO also waded into the debate about negative interest rates, suggesting history will take a dim view of that monetary policy experiment. The European Central Bank has imposed negative rates on banks for half a decade now. Some of Europe’s most senior bankers have blasted the policy, with Deutsche Bank AG CEO Christian Sewing saying it ruins the financial system in the long run.

While central bankers argue they support the economy, the burden on commercial banks is mounting and the industry is warning about detrimental long-term side effects. Solomon, who took over at the helm of Goldman Sachs a little more than a year ago, also questioned their economic benefit.

“When we look back on negative rates, I think when the book’s written, it’s not going to look like a great experiment,” he said. “Growth in this part of the world has been lagging and negative rates have not allowed an acceleration of that growth in my opinion.”

The losses on the equity investments last quarter add to headwinds for Solomon, 57. Shares of Goldman Sachs, which celebrates its 150th anniversary this year, have trailed peers as investors await the fallout from a global corruption scandal involving Malaysia’s investment fund 1MDB. The CEO has also struggled to revive the trading unit, and pleaded for patience with a fledgling consumer business started by his predecessor.

Solomon is tightening the bank’s partnership ranks and installing new leaders across divisions. He has promised to lay out a vision for the firm’s future at the firm’s inaugural investor day in January that could serve as a catalyst for its stock, though he cautioned on Tuesday that shareholders shouldn’t expect a shift in strategy.

“We’ve got very, very good businesses that we’re very proud of and we’d like to evolve those businesses a little bit,” Solomon said. “I wouldn’t expect any big reveal.”

This article was provided by Bloomberg News.

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