Are bank mergers good or bad for you? You may have heard that Wachovia is taking over SouthTrust Bank. SouthTrust has been very successful throughout the years, so people in the business expected it to be bought off sooner or later. So, what’s in it for you if you’re with either if these banks? First of all, if you’re with the bigger bank, you don't have much to worry about. There are more ATM machines to visit, making it even more convenient for you. Customers of the other bank, however, almost always lose. All the procedures, policies and people are usually tossed out the window. In addition, as computer systems merge, problems almost always arise. Transactions get fouled up and money gets lost. But the biggest losers are the employees of the bank being bought. In this case, SouthTrust. The stockholders, on the other hand, win big. But the group most often forgotten when banks merge are taxpayers. Anytime banks merge, taxpayers take on extra risk. Why? Because taxpayers provide the insurance to keep banks running. So, as these banks get bigger and bigger, taxpayers end up on the hook if one of the big ones goes belly up. When the rash of bank failures occurred in the late '80s and early ‘90s, taxpayers were out $500 billion. If it were up to Clark, accounts would no longer be insured by taxpayers after banks reached a certain size. Monitor your SouthTrust accounts if you are a customer.