According to CNBC, Whitney's outlook is that:
lending standards have tightened dramatically, and there is
an unavoidable restructuring of risk taking place, causing money to
come out of the system and lending to contract, with or without a 'bad
bank' structure.
Overall, Whitney doesn't see the plan stopping the contracting of
credit; instead she predicts that banks would be "left with lower
earnings ... and the requirement to build reserves." Instead she argues
that lenders should monetize their "good" assets to cover their "bad"
assets. -
George White
See CNBC story
Comments
The creation of a so-called "bad bank" to buy up the toxic assets no one wants nowadays won't do much to spur banks to start lending again, banking analyst Meredith Whitney said in a note to clients. 
I think she has the wrong priorities. The goal is not to "fix" things, whatever that means, the goal is to give some people some tax money and this plan does that.