The government is likely unimpeded in its effort to use a 25-year-old law to bring civil claims against big banks, even after being dealt a blow in one of its cases against Bank of America, according to legal experts.

B of A lawyers revealed cracks in the Department of Justice's use of the Financial Institutions Reform, Recovery, and Enforcement Act to punish banks when a magistrate judge last week recommended dismissal of a case alleging the bank grossly overstated the quality of over $850 million in mortgage securities sold to investors.

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