ANALYST VIEW: U.S. government to pour billions more into AIG

NEW YORK (Reuters) - The U.S. government has agreed to pour about $30 billion in additional equity into struggling insurer American International Group Inc (AIG.N), one of several moves to sweeten a bailout which left the insurer struggling, sources said on Sunday.

The agreement includes more lenient terms on an existing government investment in AIG preferred shares and a lower interest rate on a $60 billion government credit line, a source familiar with the matter told Reuters.

AIG's board voted to approve the revised agreement on Sunday, sources said.

The following is reaction from analysts and investors:

PETER MORICI, PROFESSOR AT THE SMITH SCHOOL OF BUSINESS, UNIVERSITY OF MARYLAND

"AIG is insuring the losses of the banks...It's the other side of the banks' problems. Until the government does something to stop the losses, it's going to be pouring money into both AIG and the banks."

"This is just another band-aid."

"There's no amount of money that you can give (AIG), there are $2 trillion in losses out there."

"This is like giving them three buckets when there's a hole in the boat."