That is absolutly crazy. We had a kid like that at our busstop. He was 1 year older and 3 inches taller than me. In the middle of January he stole my brothers hat and threw it out the bus window. The bus driver didn't care, so when we got off, I told my brother to go get his hat, then shoved the bully in the back. I was in third grade, he was in fourth and with our bulky gloves and winter coats we didn't hurt each other but ended up just wrestling and whitewashing each other. About a minute or two later, my Mom was wondering where we were (the bus was already late) and came running up grabbed the bully and threw him (it seemed like a long ways but I would guess it was only 5 feet). It turns out his mother was standing two houses away just watching (and she had a McGruff Safehouse sign in her window!). She drove us to school for the next week, spoke to the pricipal and a week later we were on different bus routes. I don't know if the bully suffered any disciplinary action, but I expect there was.
Years later I was talking to my brother who was briefly friends with the bully's sister. It turns out that their father beat their mother and sexually molested his daughter. Some people just deserve to be shot.
As to the mother, I still can't imagine standing back and watching your son fight...
I hate making excuses but in this case I don't think the kids ever had a chance.
Edit: The bus driver was fired immediatly.