A federal judge said Deutsche Bank AG and a unit of BNP Paribas SA can proceed with lawsuits against Bank of America Corp. for losses they sustained when a subsidiary of scandal-scarred mortgage lender Taylor Bean & Whittaker collapsed.

Judge Robert W. Sweet of the U.S. District Court in Manhattan said in 107-page opinion that Deutsche Bank and BNP Paribas Mortgage Corp. can move ahead with their breach-of-contract suits against Bank of America for failing to secure $1.75 billion in cash and mortgage loans on their behalf....