Bank buybacks were common before the credit crunch really took root. Which meant that banks were buying back lots of their shares at really high prices--only to see them tank. Goldman Sachs (GS) reportedly lost about $6 billion on the shares it repurchased, but other banks fared just as poorly, notes The Motley Fool.

Bank of America (BAC) bought back $19.4 billion worth of stock at between $40 and $55, "then sold more than $13 billion at around $11 a share. Heckuva job! Citigroup (C) happily repurchased $16.1 billion of its own shares during the bubble, then sold about one-third of itself to taxpayers when it was nearing penny-stock territory. Well done, guys!" But the past is the past. Frankly, if the banks need shares for stock and options programs, now might be a good time to buy. 

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