Bank of America's fourth-quarter profit plunged 63% as the banking giant was weighed down by billions in charges related to a dispute with Fannie Mae and a foreclosure settlement, while revenue also tumbled.

In settlements announced last week, Bank of America agreed to pay $11.6bn to Fannie Mae tied to so-called putbacks, the loans that Fannie demands lenders buy back as a result of questionable underwriting and other missteps. The agreement covers nearly a decade of home loans and is the bank's latest response to the hangover from its 2008 acquisition of Countrywide Financial Corp., which was the largest US lender to customers with spotty credit histories. The bank said it would take a $2.7 billion pre-tax charge in the fourth quarter related to the deal.