Feds chicken out on FIRREA lawsuit against B of A

According to Ben Protess article in Dealbook,  Judge Cayer is recommending to drop the government's lawsuit against Bank of America. In a time where Americans, for the most part, are outraged at the lack of criminal prosecution against the banksters, we have yet another Judge who wants to let them off the hook? Was the $9.3 billion settlement actually a payoff to get out of the criminal charges?

"The lawsuit cites emails from the bank’s employees expressing concern about the quality of the mortgages underling the securities, including one employee who wrote that some mortgages were “like a fat kid in dodge ball, these need to stay on the sidelines."

"Bank of America, which was represented by Skadden Arps, denied the accusations and asked that the case be dismissed. It was assigned to a magistrate judge; holders of that position typically handle scheduling and other procedural matters but occasionally issue rulings as well.

The magistrate judge agreed with Bank of America, concluding that the Justice Department had failed to meet the requirements for a case involving false statements to a government agency. The Federal Home Loan Bank is not an agency. And the Justice Department’s accusations, the magistrate judge ruled, fail to satisfy the requirement that misstatements materially affected the Federal Home Loan Bank’s government regulator"

see the story at DealBook here    http://goo.gl/3AH7lC