After working 33 years for the same bank where I have had my experience working for bosses like yours, here's my advice:

1) If you don't plan to make a career of this place, then go to the boss that gave you permission and rat out the lower-level boss; or...
2) If you plan to make a long career of this place, then drop it, because if you complain (and win or lose), your immediate boss will come up with many ways to get back at you that won't be traceable to this incident.