* Department of Justice alerts judge to favorable ruling

* Ruling endorses key weapon in mortgage fraud cases

* U.S. using FIRREA in pending cases against BofA, Wells Fargo

Reuters-

The U.S. Justice Department has promptly capitalized on a court victory to bolster a case before another federal judge, citing a ruling on Wednesday that endorsed the agency’s use of a little known financial fraud law to prosecute bank actions during the financial crisis.

In a letter made public on Thursday, the agency told U.S. District Judge Jesse Furman on Wednesday that the ruling is one reason why its mortgage-fraud case against Wells Fargo & Co should not be dismissed.

U.S. District Judge Lewis Kaplan made that ruling in a lawsuit against Bank of New York Mellon, which the Justice Department accuses of overcharging clients for trading currencies.

[REUTERS]