In scene 1, where exactly does the bank get the other $420 to make loans?
If they get a $100 deposit and reserve requirements are 20%, then that bank can loan out $80.
If you want to read a discussion about the issues with fraud regarding the details of fractional reserve banking, this was discussed in great detail in this thread:
https://forum.freecapitalists.org/t/the-myth-of-fractional-reserve-banking-as-fraud/16927
The issue is not whether or not money gets “created” through fractional reserve banking (it does, period, because fractional reserve banking is a form of lending/sharing). The issue is that historically, and today, banks are able to engage in fractional reserve banking because there are governmental backstops that make the consumer OK with this (FDIC, Federal Reserve), and NOT because the banks are upfront with consumers making it clear to them that if they deposit $100, the bank will loan out $90, making it possible for a run on the bank, and the consumer not getting his money back.