WASHINGTON (MarketWatch) - Testifying before a congressional committee, Goldman Sachs Group Inc. Chief Executive Lloyd Blankfein said Tuesday that a transaction at the center of a Securities and Exchange Commission lawsuit looks bad to the public but isn't fraud. Goldman (TICKER:GS) has been under fire since the SEC charged the investment bank earlier this month with securities fraud, alleging it didn't tell investors in a collateralized debt obligation that hedge fund firm Paulson & Co. helped structure the deal and was betting against it. Blankfein said he disagrees with the SEC's charges. "While we strongly disagree with the SEC's complaint, I also recognize how such a complicated transaction may look to many people. To them, it is confirmation of how out of control they believe Wall Street has become, no matter how sophisticated the parties or what disclosures were made. We have to do a better job of striking the balance between what an informed client believes is important to his or her investing goals and what the public believes is overly complex and risky," Blankfein said.