Is Gov. Christie still damaged goods for 2016?

This is a rush transcript from "On the Record," March 27, 2014. This copy may not be in its final form and may be updated.

GRETA VAN SUSTEREN, FOX NEWS HOST: Governor Chris Christie hired a law firm with state tax funds to investigate Bridgegate. Well, the law firm just released its report clearing the New Jersey governor, Chris Christie, in the Bridgegate scandal. The firm reports including Governor Christie was involved in the plot to close lanes near the George Washington Bridge, as political retribution against a local mayor. The report places a blame on former Christie aide and court authority official.

Charles Krauthammer, author of the New York Times' best-selling book -- on the best-selling list 22 weeks, "Things That Matter," joins us. Thanks for being here, Charles.


VAN SUSTEREN: What do you make of this report?

KRAUTHAMMER: Not exactly Caesar's wife clean. This is not an objective -- it is not objective investigation because it was hired by Christie himself. But from what I have looked and what I've seen of it, it seems reliable. They have been able to report on all the facts and cannot find any hard evidence. There is one possible exception, it's not hard evidence, it's soft. That Christie had any idea it was going to happen and was in on the planning. It

There was one reported conversation by David Wildstein, the guy from the port authority, who ordered the lane closures who says that on 9/11, at an event with Christie, he said he mentioned this to him. Christie has no recollection of that discussion. It's not improbable. Would you remember the report on traffic conditions on 9/11? Perhaps not.

But the problem for Christie is the real reports are going to be the federal prosecutor and the legislative committees, which are held by democrats and which will be intentionally hostile. But he has now been able to pass the first hurdle, which I think is very good for him.

VAN SUSTEREN: Well, the taxpayers pay for which I never liked, the report -- I mean, I don't think the report laid a glove on him. I would not incriminate (ph) him at all anyway throughout this. I'm not sure why, whatever. You don't have the main people, the three cull pits even talking certainly not under oath. Much ado about nothing.

KRAUTHAMMER: Look, Christie came out of his election in November as the frontrunner. He was so popular, he was doing so well, so far ahead of everybody. Northeastern state. He then really fell into the pack. I think it puts him back in the top tier. Not running away with it, but I think it restores him quite a bit.

VAN SUSTEREN: And I agree. Much to do about nothing, I meant much to do about nothing in terms of report itself. Charles, thank you.

KRAUTHAMMER: It's a pleasure.