What do you think "fractional reserve banking" means and why is it bad?
The issue of FRB in itself is not bad, giving that unrestricted power to a handful of unelected people is the "BAD" part.
Fractional Reserve Banking increases the amount of dollars in the system without actually printing money, (A.K.A. inflation).
So a handful of people can up the PAR numbers (amount of money a bank can lend in relation to the real assets they have on hand) and no one can really do anything about it. And the underhanded games that can be played by the banking elite and the FED is virtually unlimited and as such there is no real oversight.