If they have deposit insurance the banks should be forced to keep full reserves

Frb enables multiple people to spend the same money.

Normally when money is spent it is lost to the person who spent it, but with the present system of banking the money returns to the bank which is then able to spend it again, usually buying a loan. The bank does not need (they are not required) to keep the money in reserve and so there is nothing to prevent it being loaned out multiple times. The banks would not need to be bailed out if they were mandated to keep sufficient (full) reserves.