I bet you think fractional reserve banking is a scam too 
Am I talking to a bunch of rubes that just fell off the turnip truck? Of course fractional reserve banking is a scam.
It is the natural state of affairs. You can't regulate what is natural. So nature is a scam?
Did you forget what the free market chose to do in the 1800s by preferring to use fractional receipts instead of trade physical gold.
What is natural can still be evil.
Slavery is natural too. As a species we finally got rid of it (at least officially) in 1981 when Mauritania became the last nation to outlaw slavery.
It is possible to eliminate what is both natural and evil it is just very hard. We will get rid of fractional reserve too someday. It is a much more subtle evil, however, so it might not happen for a long time.
I wrote a few posts on the basics of the fractional reserve system a while ago here:
Finance Part I: Understanding the Parasite
Finance Part II: The Parasitic Cycle
Finance Part III: Divide, Conquer, Enslave