----

**UNITED      STATES SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON,      D.C. 20549**

|   |                         |   |
|--------|------------------------------|--------|
|   | **FORM                10-Q** |   |

**GENERAL      ELECTRIC CAPITAL SERVICES, INC.**

| **Delaware**                                                                  |   | **06-1109503**                                      |
|-------------------------------------------------------------------------------|--------|-----------------------------------------------------|
| (State                or other jurisdiction of incorporation or organization) |   | (I.R.S.                Employer Identification No.) |
|                                                                          |   |                                                |
| **260                Long Ridge Road, Stamford, CT**                          |   | **06927**                                           |
| (Address                of principal executive offices)                       |   | (Zip                Code)                           |

** **
**(203)      357-4000**

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** **
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**þ**

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**þ**

**REGISTRANT      MEETS THE CONDITIONS SET FORTH IN GENERAL INSTRUCTION H(1)(a) AND (b) OF      FORM 10-Q AND IS THEREFORE FILING THIS FORM 10-Q WITH THE REDUCED      DISCLOSURE FORMAT.**

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**General      Electric Capital Services, Inc.**

| **Part                I - Financial Information**                                                                                 |   | Page   |
|-----------------------------------------------------------------------------------------------------------------------------------|--------|--------|
|                                                                                                                              |   |   |
| Item                1. Financial Statements                                                                                       |   |   |
| Condensed                Statement of Current and Retained Earnings                                                               |   | 3      |
| Condensed                Statement of Financial Position                                                                          |   | 4      |
| Condensed                Statement of Cash Flows                                                                                  |   | 5      |
| Notes                to Condensed, Consolidated Financial Statements                (Unaudited)                                   |   | 6      |
| Item                2. Management’s Discussion and Analysis of Financial Condition and Results                of Operations |   | 12     |
| Item                4. Controls and Procedures                                                                                    |   | 20     |
|                                                                                                                              |   |   |
| **Part                II - Other Information**                                                                                    |   |   |
|                                                                                                                              |   |   |
| Item                6. Exhibits                                                                                                   |   | 20     |
| Signatures                                                                                                                        |   | 21     |
|                                                                                                                              |   |   |

**Forward-Looking      Statements**

----

**Part      I. Financial Information**

**Item      1. Financial Statements**

**General      Electric Capital Services, Inc. and consolidated      affiliates**

**Condensed      Statement of Current and Retained Earnings**

**(Unaudited)**

|                                                                                 | **Three                months ended****March                31** |   |
|--------------------------------------------------------------------------------------|------------------------------------------------------------------|--------|
| *(In                millions)*                                                       | **2006**                                                         |   | **2005** |   |
|                                                                                 |                                                             |   |   |   |   |   |
| **Revenues**                                                                         |                                                             |   |   |   |   |   |
| Revenues                from services (note 3)                                       | $                                                                | 14,126 |   | $ | 12,931 |   |
| Sales                of goods                                                        |                                                             | 555    |   |   | 674 |   |
| Total                revenues                                                        |                                                             | 14,681 |   |   | 13,605 |   |
|                                                                                 |                                                             |   |   |   |   |   |
| **Costs                and expenses**                                                |                                                             |   |   |   |   |   |
| Interest                                                                             |                                                             | 4,107  |   |   | 3,414 |   |
| Operating                and administrative                                          |                                                             | 4,224  |   |   | 4,053 |   |
| Cost                of goods sold                                                    |                                                             | 513    |   |   | 635 |   |
| Investment                contracts, insurance losses and insurance annuity benefits |                                                             | 805    |   |   | 866 |   |
| Provision                for losses on financing receivables                         |                                                             | 822    |   |   | 902 |   |
| Depreciation                and amortization                                         |                                                             | 1,499  |   |   | 1,637 |   |
| Minority                interest in net earnings of consolidated affiliates          |                                                             | 75     |   |   | 30 |   |
| Total                costs and expenses                                              |                                                             | 12,045 |   |   | 11,537 |   |
|                                                                                 |                                                             |   |   |   |   |   |
| **Earnings                from continuing operations before income taxes**           |                                                             | 2,636  |   |   | 2,068 |   |
| Provision                for income taxes                                            |                                                             | (366   | ) |   | (205 | ) |
|                                                                                 |                                                             |   |   |   |   |   |
| **Earnings                from continuing operations**                               |                                                             | 2,270  |   |   | 1,863 |   |
| Earnings                from discontinued operations, net of taxes (note 2)          |                                                             | 263    |   |   | 405 |   |
|                                                                                 |                                                             |   |   |   |   |   |
| **Net                earnings**                                                      |                                                             | 2,533  |   |   | 2,268 |   |
| Dividends                                                                            |                                                             | (3,544 | ) |   | (224 | ) |
| Retained                earnings at beginning of period                              |                                                             | 35,379 |   |   | 35,976 |   |
| Retained                earnings at end of period                                    | $                                                                | 34,368 |   | $ | 38,020 |   |
|                                                                                 |                                                             |   |   |   |   |   |

----

**General      Electric Capital Services, Inc. and consolidated      affiliates**

**Condensed      Statement of Financial Position**

| *(In                millions)*                                                                           | **March                31, 2006** |    | **December                31, 2005** |
|----------------------------------------------------------------------------------------------------------|-----------------------------------|---------|--------------------------------------|
|                                                                                                     | **(Unaudited)**                   |    |                                 |
| **Assets**                                                                                               |                              |    |                                 |   |   |   |
| Cash                and equivalents                                                                      | $                                 | 6,900   |                                 | $ | 7,130 |   |
| Investment                securities                                                                     |                              | 44,512  |                                 |   | 41,710 |   |
| Inventories                                                                                              |                              | 161     |                                 |   | 159 |   |
| Financing                receivables - net (note 4)                                                      |                              | 286,834 |                                 |   | 287,639 |   |
| Other                receivables                                                                         |                              | 18,855  |                                 |   | 18,625 |   |
| Buildings                and equipment, less accumulated amortization of $21,509                         |                              |    |                                 |   |   |   |
| and                $21,327                                                                               |                              | 51,314  |                                 |   | 51,024 |   |
| Intangible                assets - net (note 5)                                                          |                              | 23,814  |                                 |   | 23,791 |   |
| Other                assets                                                                              |                              | 51,871  |                                 |   | 49,461 |   |
| Assets                of discontinued operations (note 2)                                                |                              | 58,512  |                                 |   | 61,066 |   |
| Total                assets                                                                              | $                                 | 542,773 |                                 | $ | 540,605 |   |
|                                                                                                     |                              |    |                                 |   |   |   |
| **Liabilities                and equity**                                                                |                              |    |                                 |   |   |   |
| Borrowings                (note 6)                                                                       | $                                 | 366,679 |                                 | $ | 362,069 |   |
| Accounts                payable                                                                          |                              | 12,214  |                                 |   | 13,043 |   |
| Investment                contracts, insurance liabilities and insurance annuity                benefits |                              | 33,811  |                                 |   | 33,387 |   |
| Other                liabilities                                                                         |                              | 15,738  |                                 |   | 16,787 |   |
| Deferred                income taxes                                                                     |                              | 13,087  |                                 |   | 12,493 |   |
| Liabilities                of discontinued operations (note 2)                                           |                              | 49,702  |                                 |   | 49,763 |   |
| Total                liabilities                                                                         |                              | 491,231 |                                 |   | 487,542 |   |
|                                                                                                     |                              |    |                                 |   |   |   |
| Minority                interest in equity of consolidated affiliates                                    |                              | 2,288   |                                 |   | 2,248 |   |
|                                                                                                     |                              |    |                                 |   |   |   |
| Capital                stock                                                                             |                              | 11      |                                 |   | 11 |   |
| Accumulated                gains (losses) - net                                                          |                              |    |                                 |   |   |   |
| Investment                securities                                                                     |                              | 1,049   |                                 |   | 1,754 |   |
| Currency                translation adjustments                                                          |                              | 2,007   |                                 |   | 2,287 |   |
| Cash                flow hedges                                                                          |                              | (507    | )                                    |   | (813 | ) |
| Minimum                pension liabilities                                                               |                              | (189    | )                                    |   | (179 | ) |
| Additional                paid-in capital                                                                |                              | 12,515  |                                 |   | 12,376 |   |
| Retained                earnings                                                                         |                              | 34,368  |                                 |   | 35,379 |   |
| Total                shareowner’s equity                                                           |                              | 49,254  |                                 |   | 50,815 |   |
| Total                liabilities and equity                                                              | $                                 | 542,773 |                                 | $ | 540,605 |   |
|                                                                                                     |                              |    |                                 |   |   |   |

----

**General      Electric Capital Services, Inc. and consolidated      affiliates**

**Condensed      Statement of Cash Flows**

**(Unaudited)**

| *(In                millions)*                                                                                 | **Three                months ended****March                31** |    |
|----------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------|---------|
|                                                                                                           | **2006**                                                         |    | **2005** |   |
| **Cash                flows - operating activities**                                                           |                                                             |    |   |   |   |   |
| Net                earnings                                                                                    | $                                                                | 2,533   |   | $ | 2,268 |   |
| Earnings                from discontinued operations                                                           |                                                             | (263    | ) |   | (405 | ) |
| Adjustments                to reconcile net earnings to cash provided from operating                activities |                                                             |    |   |   |   |   |
| Depreciation                and amortization of buildings and equipment                                        |                                                             | 1,499   |   |   | 1,637 |   |
| Decrease                in accounts payable                                                                    |                                                             | (462    | ) |   | (850 | ) |
| Provision                for losses on financing receivables                                                   |                                                             | 822     |   |   | 902 |   |
| All                other operating activities                                                                  |                                                             | (868    | ) |   | 1,534 |   |
| Cash                from operating activities - continuing operations                                          |                                                             | 3,261   |   |   | 5,086 |   |
| Cash                from operating activities - discontinued operations                                        |                                                             | 91      |   |   | 1,210 |   |
| **Cash                from operating activities**                                                              |                                                             | 3,352   |   |   | 6,296 |   |
|                                                                                                           |                                                             |    |   |   |   |   |
| **Cash                flows - investing activities**                                                           |                                                             |    |   |   |   |   |
| Additions                to buildings and equipment                                                            |                                                             | (2,131  | ) |   | (2,522 | ) |
| Dispositions                of buildings and equipment                                                         |                                                             | 1,113   |   |   | 1,814 |   |
| Increase                in loans to customers                                                                  |                                                             | (72,503 | ) |   | (76,307 | ) |
| Principal                collections from customers - loans                                                    |                                                             | 65,665  |   |   | 74,482 |   |
| Investment                in equipment for financing leases                                                    |                                                             | (5,758  | ) |   | (5,221 | ) |
| Principal                collections from customers - financing leases                                         |                                                             | 6,027   |   |   | 5,873 |   |
| Net                change in credit card receivables                                                           |                                                             | 3,506   |   |   | 1,923 |   |
| Payments                for principal businesses purchased                                                     |                                                             | (424    | ) |   | (4,631 | ) |
| All                other investing activities                                                                  |                                                             | (1,481  | ) |   | 156 |   |
| Cash                used for investing activities - continuing operations                                      |                                                             | (5,986  | ) |   | (4,433 | ) |
| Cash                from (used for) investing activities - discontinued                operations              |                                                             | 800     |   |   | (359 | ) |
| **Cash                used for investing activities**                                                          |                                                             | (5,186  | ) |   | (4,792 | ) |
|                                                                                                           |                                                             |    |   |   |   |   |
| **Cash                flows - financing activities**                                                           |                                                             |    |   |   |   |   |
| Net                decrease in borrowings (maturities of 90 days or less)                                      |                                                             | (2,876  | ) |   | (3,675 | ) |
| Newly                issued debt:                                                                              |                                                             |    |   |   |   |   |
| Short-term                (91 to 365 days)                                                                     |                                                             | 316     |   |   | 401 |   |
| Long-term                (longer than one year)                                                                |                                                             | 24,194  |   |   | 23,229 |   |
| Non-recourse,                leveraged lease                                                                   |                                                             | 73      |   |   | 47 |   |
| Repayments                and other debt reductions:                                                           |                                                             |    |   |   |   |   |
| Short-term                (91 to 365 days)                                                                     |                                                             | (14,051 | ) |   | (14,721 | ) |
| Long-term                (longer than one year)                                                                |                                                             | (1,548  | ) |   | (5,652 | ) |
| Non-recourse,                leveraged lease                                                                   |                                                             | (382    | ) |   | (504 | ) |
| Dividends                paid to shareowner                                                                    |                                                             | (3,404  | ) |   | (224 | ) |
| All                other financing activities                                                                  |                                                             | 173     |   |   | (592 | ) |
| Cash                from (used for) financing activities - continuing                operations                |                                                             | 2,495   |   |   | (1,691 | ) |
| Cash                used for financing activities - discontinued operations                                    |                                                             | (249    | ) |   | (613 | ) |
| **Cash                from (used for) financing activities**                                                   |                                                             | 2,246   |   |   | (2,304 | ) |
|                                                                                                           |                                                             |    |   |   |   |   |
| **Increase                (decrease) in cash and equivalents**                                                 |                                                             | 412     |   |   | (800 | ) |
| Cash                and equivalents at beginning of year                                                       |                                                             | 10,106  |   |   | 12,367 |   |
| Cash                and equivalents at March 31                                                                |                                                             | 10,518  |   |   | 11,567 |   |
| Less                cash and equivalents of discontinued operations at March                31                 |                                                             | 3,618   |   |   | 3,504 |   |
| **Cash                and equivalents of continuing operations at March                31**                    | $                                                                | 6,900   |   | $ | 8,063 |   |
|                                                                                                           |                                                             |    |   |   |   |   |

----

**Notes      to Condensed, Consolidated Financial Statements (Unaudited)**

**Planned      sale of GE Life**

**Planned      sale of GE Insurance Solutions**

----

**Completed      sale of Genworth**

|                                                                     | **Three                months ended****March                31** |   |
|--------------------------------------------------------------------------|------------------------------------------------------------------|--------|
| *(In                millions)*                                           | **2006**                                                         |   | **2005** |   |
|                                                                     |                                                             |   |   |   |   |   |
| **Discontinued                operations before disposal**               |                                                             |   |   |   |   |   |
| Revenues                from services                                    | $                                                                | 2,345  |   | $ | 5,213 |   |
|                                                                     |                                                             |   |   |   |   |   |
| Earnings                from discontinued operations before              |                                                             |   |   |   |   |   |
| minority                interest and income taxes                        | $                                                                | 179    |   | $ | 698 |   |
| Minority                interest                                         |                                                             | -      |   |   | 99 |   |
| Earnings                from discontinued operations before income taxes |                                                             | 179    |   |   | 599 |   |
| Income                tax expense                                        |                                                             | (41    | ) |   | (280 | ) |
| Earnings                from discontinued operations                     |                                                             |   |   |   |   |   |
| before                disposal, net of taxes                             | $                                                                | 138    |   | $ | 319 |   |
|                                                                     |                                                             |   |   |   |   |   |
| **Disposal**                                                             |                                                             |   |   |   |   |   |
| Gain                on disposal before income taxes                      | $                                                                | 306    |   | $ | 156 |   |
| Income                tax expense                                        |                                                             | (181   | ) |   | (70 | ) |
| Gain                on disposal, net of taxes                            | $                                                                | 125    |   | $ | 86 |   |
|                                                                     |                                                             |   |   |   |   |   |
| Earnings                from discontinued operations, net of taxes       | $                                                                | 263    |   | $ | 405 |   |

|                                                                  | **At**      |   |
|-----------------------------------------------------------------------|-------------|--------|
| *(In                millions)*                                        | **3/31/06** |   | **12/31/05** |   |
|                                                                  |        |   |   |   |   |   |
| **Assets**                                                            |        |   |   |   |   |   |
| Cash                and equivalents                                   | $           | 3,618  |   | $ | 2,976 |   |
| Investment                securities                                  |        | 35,023 |   |   | 37,633 |   |
| Other                receivables                                      |        | 13,333 |   |   | 13,915 |   |
| Other                                                                 |        | 6,538  |   |   | 6,542 |   |
| Assets                of discontinued operations                      | $           | 58,512 |   | $ | 61,066 |   |
|                                                                  |        |   |   |   |   |   |
| **Liabilities                and equity**                             |        |   |   |   |   |   |
| Investment                contracts, insurance liabilities            |        |   |   |   |   |   |
| and                insurance annuity benefits                         | $           | 43,525 |   | $ | 43,378 |   |
| Other                                                                 |        | 6,177  |   |   | 6,385 |   |
| Liabilities                of discontinued operations                 | $           | 49,702 |   | $ | 49,763 |   |
|                                                                  |        |   |   |   |   |   |
| Total                accumulated nonowner changes other than earnings | $           | 65     |   | $ | 652 |   |

----

|                                                   | **Three                months ended****March                31** |   |
|--------------------------------------------------------|------------------------------------------------------------------|--------|
| *(In                millions)*                         | **2006**                                                         |   | **2005** |   |
|                                                   |                                                             |   |   |   |   |   |
| Interest                on loans                       | $                                                                | 5,342  |   | $ | 4,863 |   |
| Operating                lease rentals                 |                                                             | 2,915  |   |   | 2,757 |   |
| Investment                income                       |                                                             | 660    |   |   | 655 |   |
| Fees                                                   |                                                             | 1,007  |   |   | 847 |   |
| Financing                leases                        |                                                             | 1,002  |   |   | 1,033 |   |
| Premiums                earned by insurance activities |                                                             | 491    |   |   | 553 |   |
| Other                income                            |                                                             | 2,709  |   |   | 2,223 |   |
| Total                                                  | $                                                                | 14,126 |   | $ | 12,931 |   |

|                                                                  | **At**      |    |
|-----------------------------------------------------------------------|-------------|---------|
| *(In                millions)*                                        | **3/31/06** |    | **12/31/05** |   |
|                                                                  |        |    |   |   |   |   |
| Loans,                net of deferred income                          | $           | 227,528 |   | $ | 227,923 |   |
| Investment                in financing leases, net of deferred income |        | 63,810  |   |   | 64,309 |   |
|                                                                  |        | 291,338 |   |   | 292,232 |   |
| Less                allowance for losses                              |        | (4,504  | ) |   | (4,593 | ) |
| Financing                receivables - net                            | $           | 286,834 |   | $ | 287,639 |   |

|                                                                  | **At**      |   |
|-----------------------------------------------------------------------|-------------|--------|
| *(In                millions)*                                        | **3/31/06** |   | **12/31/05** |   |
|                                                                  |        |   |   |   |   |   |
| Loans,                net of deferred income                          | $           | 14,755 |   | $ | 15,868 |   |
| Investment                in financing leases, net of deferred income |        | 131    |   |   | 769 |   |
|                                                                  |        | 14,886 |   |   | 16,637 |   |
| Less                allowance for losses                              |        | (22    | ) |   | (22 | ) |
| Financing                receivables - net                            | $           | 14,864 |   | $ | 16,615 |   |

|                                                     | **At**      |   |
|----------------------------------------------------------|-------------|--------|
| *(In                millions)*                           | **3/31/06** |   | **12/31/05** |   |
|                                                     |        |   |   |   |   |   |
| Goodwill                                                 | $           | 21,376 |   | $ | 21,337 |   |
| Intangible                assets subject to amortization |        | 2,438  |   |   | 2,454 |   |
| Total                                                    | $           | 23,814 |   | $ | 23,791 |   |

----

|                                            | **2006**                        |   |
|-------------------------------------------------|---------------------------------|--------|
| *(In                millions)*                  | **GE****Commercial****Finance** |   | **GE****Consumer****Finance** |   | **GE****Industrial****(a)** |   | **GE****Infrastructure****(a)** |   | **Total** |   |
|                                            |                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance                January 1                |                            | $      | 10,621 |   |   |   | $ | 9,184 |   |   |   | $ | 1,406 |   |   |   | $ | 126 |   |   | $ | 21,337 |   |
| Acquisitions/purchase                accounting |                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| adjustments                                     |                            |   | 85 |   |   |   |   | 53 |   |   |   |   | (3 | ) |   |   |   | - |   |   |   | 135 |   |
| Currency                exchange and other      |                            |   | (11 | ) |   |   |   | (82 | ) |   |   |   | (3 | ) |   |   |   | - |   |   |   | (96 | ) |
| Balance                March 31                 |                            | $      | 10,695 |   |   |   | $ | 9,155 |   |   |   | $ | 1,400 |   |   |   | $ | 126 |   |   | $ | 21,376 |   |
|                                            |                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

| (a) | Included                only portions of the segment that are financial services                businesses. |   |
|-----|-------------------------------------------------------------------------------------------------------------|--------|

**Intangible      Assets Subject to Amortization**

|                                            | **At**                          |
|-------------------------------------------------|---------------------------------|
|                                            | **3/31/06**                     |   | **12/31/05** |
| *(In                millions)*                  | **Gross****carrying****amount** |   | **Accumulated****amortization** |   | **Net** |   | **Gross****carrying****amount** |   | **Accumulated****amortization** |   | **Net** |
|                                            |                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Capitalized                software             | $                               | 1,525 |   | $ | (837 | ) | $ | 688 |   | $ | 1,477 |   | $ | (798 | ) | $ | 679 |
| Patents,                licenses and trademarks |                            | 480 |   |   | (277 | ) |   | 203 |   |   | 497 |   |   | (272 | ) |   | 225 |
| All                other                        |                            | 2,619 |   |   | (1,072 | ) |   | 1,547 |   |   | 2,565 |   |   | (1,015 | ) |   | 1,550 |
| Total                                           | $                               | 4,624 |   | $ | (2,186 | ) | $ | 2,438 |   | $ | 4,539 |   | $ | (2,085 | ) | $ | 2,454 |

----

|                                                   | **At**      |    |
|--------------------------------------------------------|-------------|---------|
| *(In                millions)*                         | **3/31/06** |    | **12/31/05** |   |
|                                                   |        |    |   |   |   |   |
| **Short-Term                Borrowings**               |        |    |   |   |   |   |
|                                                   |        |    |   |   |   |   |
| Commercial                paper                        |        |    |   |   |   |   |
| U.S.                                                   |        |    |   |   |   |   |
| Unsecured                                              | $           | 61,724  |   | $ | 67,643 |   |
| Asset-backed(a)                                        |        | 8,157   |   |   | 9,267 |   |
| Non-U.S.                                               |        | 24,870  |   |   | 20,456 |   |
| Current                portion of long-term debt(b)(c) |        | 38,693  |   |   | 41,792 |   |
| Other                                                  |        | 18,149  |   |   | 18,514 |   |
| Total                                                  |        | 151,593 |   |   | 157,672 |   |
|                                                   |        |    |   |   |   |   |
| **Long-Term                Borrowings**                |        |    |   |   |   |   |
|                                                   |        |    |   |   |   |   |
| Senior                notes                            |        |    |   |   |   |   |
| Unsecured                                              |        | 192,239 |   |   | 180,546 |   |
| Asset-backed(d)                                        |        | 5,899   |   |   | 6,845 |   |
| Extendible                notes(e)                     |        | 13,984  |   |   | 14,022 |   |
| Subordinated                notes(f)                   |        | 2,964   |   |   | 2,984 |   |
| Total                                                  |        | 215,086 |   |   | 204,397 |   |
| **Total                borrowings**                    | $           | 366,679 |   | $ | 362,069 |   |
|                                                   |        |    |   |   |   |   |

| (a)  | Entirely                obligations of consolidated, liquidating securitization entities.                See note                8.                                                                                                                                 |
|-----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (b)  | Included                short-term borrowings by consolidated, liquidating securitization                entities                of $732 million and $697 million at March 31, 2006 and December 31,                2005,                respectively. See note 8.  |
| (c)  | Included                $250 million of subordinated notes guaranteed by GE at both March                31,                2006, and December 31, 2005.                                                                                                            |
| (d)  | Asset-backed                senior notes were all issued by consolidated, liquidating securitization                entities. See note 8.                                                                                                                           |
| (e)  | Included                $38 million of obligations of consolidated, liquidating securitization                entities at December 31, 2005. See note 8.                                                                                                            |
| (f)       | Included                $750 million of subordinated notes guaranteed by GE at both March                31,                2006, and December 31, 2005.                                                                                                                 |

|                                                  | **Three                months ended****March                31** |   |
|-------------------------------------------------------|------------------------------------------------------------------|--------|
| *(In                millions)*                        | **2006**                                                         |   | **2005** |   |
|                                                  |                                                             |   |   |   |   |   |
| Net                earnings                           | $                                                                | 2,533  |   | $ | 2,268 |   |
| Investment                securities - net            |                                                             | (705   | ) |   | (699 | ) |
| Currency                translation adjustments - net |                                                             | (280   | ) |   | 234 |   |
| Cash                flow hedges - net                 |                                                             | 306    |   |   | 459 |   |
| Minimum                pension liabilities - net      |                                                             | (10    | ) |   | (6 | ) |
| Total                                                 | $                                                                | 1,844  |   | $ | 2,256 |   |

----

*Consolidation      of Variable Interest Entities*

|                                    | **At**      |   |
|-----------------------------------------|-------------|--------|
| *(In                millions)*          | **3/31/06** |   | **12/31/05** |   |
|                                    |        |   |   |   |   |   |
| Receivables                secured by:  |        |   |   |   |   |   |
| Equipment                               | $           | 11,309 |   | $ | 12,949 |   |
| Commercial                real estate   |        | 12,355 |   |   | 13,010 |   |
| Residential                real estate  |        | 8,083  |   |   | 8,882 |   |
| Other                assets             |        | 13,079 |   |   | 12,869 |   |
| Credit                card receivables  |        | 10,973 |   |   | 10,039 |   |
| Total                securitized assets | $           | 55,799 |   | $ | 57,749 |   |

|                                    | **At**      |   |
|-----------------------------------------|-------------|--------|
| *(In                millions)*          | **3/31/06** |   | **12/31/05** |   |
|                                    |        |   |   |   |   |   |
| Off-balance                sheet(a)(b)  | $           | 39,946 |   | $ | 39,845 |   |
| On-balance                sheet(c)      |        | 15,853 |   |   | 17,904 |   |
| Total                securitized assets | $           | 55,799 |   | $ | 57,749 |   |
|                                    |        |   |   |   |   |   |

| (a)  | At                March 31, 2006 and December 31, 2005, liquidity support amounted                to $2,159                million and $1,931 million, respectively. These amounts are net of                $3,424                million and $3,786 million, respectively, participated or deferred                beyond                one year. Credit support amounted to $5,648 million and $5,988 million                at                March 31, 2006 and December 31, 2005, respectively.       |
|-----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (b)  | Liabilities                for recourse obligations related to off-balance sheet assets were                $63                million and $93 million at March 31, 2006 and December 31, 2005,                respectively.                                                                                                                                                                                                                                                                                 |
| (c)       | At                March 31, 2006 and December 31, 2005, liquidity support amounted                to $8,768                million and $10,044 million, respectively. These amounts are net                of $34                million and $138 million, respectively, participated or deferred                beyond                one year. Credit support amounted to $3,893 million and $4,780 million                at                March 31, 2006 and December 31, 2005,                respectively. |

----

|                                                | **At**      |   |
|-----------------------------------------------------|-------------|--------|
| *(In                millions)*                      | **3/31/06** |   | **12/31/05** |   |
|                                                |        |   |   |   |   |   |
| Financing                receivables - net (note 4) | $           | 14,864 |   | $ | 16,615 |   |
| Other                                               |        | 989    |   |   | 1,289 |   |
| Total                                               | $           | 15,853 |   | $ | 17,904 |   |

**Item      2. Management’s Discussion and Analysis of Financial Condition and Results of      Operations **

**A.      Results of Operations**

**Overview**

----

**Segment      Operations**

----

**Summary      of Operating Segments**

|                                                                       | **Three                months ended****March                31****(Unaudited)** |    |     |   |
|----------------------------------------------------------------------------|---------------------------------------------------------------------------------|---------|----------|--------|
| *(In                millions)*                                             | **2006**                                                                        |    | **2005** |   |   |   |
|                                                                       |                                                                            |    |     |   |   |   |   |   |
| **Revenues**                                                               |                                                                            |    |     |   |   |   |   |   |
| GE                Commercial Finance                                       | $                                                                               | 5,484   |     | $      | 5,072 |   |   |   |
| GE                Consumer Finance                                         |                                                                            | 5,090   |     |   | 4,689 |   |   |   |
| GE                Industrial                                               |                                                                            | 8,140   |     |   | 7,668 |   |   |   |
| GE                Infrastructure                                           |                                                                            | 10,152  |     |   | 9,374 |   |   |   |
| Total                segment revenues                                      |                                                                            | 28,866  |     |   | 26,803 |   |   |   |
| GECS                corporate items and eliminations(a)                    |                                                                            | 1,170   |     |   | 1,177 |   |   |   |
| Total                revenues                                              |                                                                            | 30,036  |     |   | 27,980 |   |   |   |
| Less                portion of GE revenues not included in GECS            |                                                                            | (15,355 | )        |   | (14,375 | ) |   |   |
| Total                revenues in GECS                                      | $                                                                               | 14,681  |     | $      | 13,605 |   |   |   |
|                                                                       |                                                                            |    |     |   |   |   |   |   |
| **Segment                profit**                                          |                                                                            |    |     |   |   |   |   |   |
| GE                Commercial Finance                                       | $                                                                               | 1,174   |     | $      | 926 |   |   |   |
| GE                Consumer Finance                                         |                                                                            | 836     |     |   | 735 |   |   |   |
| GE                Industrial                                               |                                                                            | 600     |     |   | 526 |   |   |   |
| GE                Infrastructure                                           |                                                                            | 1,703   |     |   | 1,540 |   |   |   |
| Total                segment profit                                        |                                                                            | 4,313   |     |   | 3,727 |   |   |   |
| GECS                corporate items and eliminations                       |                                                                            | (108    | )        |   | (82 | ) |   |   |
| Less                portion of GE segment profit not included in GECS      |                                                                            | (1,935  | )        |   | (1,782 | ) |   |   |
| Earnings                in GECS from continuing operations                 |                                                                            | 2,270   |     |   | 1,863 |   |   |   |
| Earnings                in GECS from discontinued operations, net of taxes |                                                                            | 263     |     |   | 405 |   |   |   |
| Total                net earnings in GECS                                  | $                                                                               | 2,533   |     | $      | 2,268 |   |   |   |
|                                                                       |                                                                            |    |     |   |   |   |   |   |

| (a) | Primarily                revenues associated with our insurance activities remaining in continuing                operations that were previously reported in the GE Commercial Finance                segment. |   |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|

----

**GE      Commercial Finance**

|                                    | **Three                months ended****March                31** |    |        |   |         |
|-----------------------------------------|------------------------------------------------------------------|---------|-------------|--------|--------------|
| *(In                millions)*          | **2006**                                                         |    | **2005**    |   |         |   |   |
|                                    |                                                             |    |        |   |         |   |   |   |   |
| **Revenues**                            | $                                                                | 5,484   |        | $      | 5,072        |   |   |   |   |
|                                    |                                                             |    |        |   |         |   |   |   |   |
| **Segment                profit**       | $                                                                | 1,174   |        | $      | 926          |   |   |   |   |
|                                    |                                                             |    |        |   |         |   |   |   |   |
|                                    |                                                             |    |        |   |         |   |   |   |   |
|                                    | **At**                                                           |    |
| *(In                millions)*          | **3/31/06**                                                      |    | **3/31/05** |   | **12/31/05** |   |
|                                    |                                                             |    |        |   |         |   |   |   |   |
| **Total                assets**         | $                                                                | 195,209 |        | $      | 187,626      |   | $ | 190,546 |   |
|                                    |                                                             |    |        |   |         |   |   |   |   |
|                                    |                                                             |    |        |   |         |   |   |   |   |
|                                    | **Three                months ended****March                31** |    |        |   |         |
| *(In                millions)*          | **2006**                                                         |    | **2005**    |   |         |   |   |
|                                    |                                                             |    |        |   |         |   |   |   |   |
| **Revenues                in GE**       |                                                             |    |        |   |         |   |   |   |   |
| Capital                Solutions        | $                                                                | 2,820   |        | $      | 2,889        |   |   |   |   |
| Real                Estate              |                                                             | 1,075   |        |   | 898          |   |   |   |   |
|                                    |                                                             |    |        |   |         |   |   |   |   |
| **Segment                profit in GE** |                                                             |    |        |   |         |   |   |   |   |
| Capital                Solutions        | $                                                                | 339     |        | $      | 286          |   |   |   |   |
| Real                Estate              |                                                             | 441     |        |   | 310          |   |   |   |   |
|                                    |                                                             |    |        |   |         |   |   |   |   |
|                                    |                                                             |    |        |   |         |   |   |   |   |
|                                    | **At**                                                           |    |
| *(In                millions)*          | **3/31/06**                                                      |    | **3/31/05** |   | **12/31/05** |   |
|                                    |                                                             |    |        |   |         |   |   |   |   |
| **Assets                in GE**         |                                                             |    |        |   |         |   |   |   |   |
| Capital                Solutions        | $                                                                | 88,661  |        | $      | 86,230       |   | $ | 87,306 |   |
| Real                Estate              |                                                             | 37,566  |        |   | 36,299       |   |   | 35,323 |   |

----

**GE      Consumer Finance**

|                              | **Three                months ended****March                31** |    |        |   |         |
|-----------------------------------|------------------------------------------------------------------|---------|-------------|--------|--------------|
| *(In                millions)*    | **2006**                                                         |    | **2005**    |   |         |   |   |
|                              |                                                             |    |        |   |         |   |   |   |   |
| **Revenues**                      | $                                                                | 5,090   |        | $      | 4,689        |   |   |   |   |
|                              |                                                             |    |        |   |         |   |   |   |   |
| **Segment                profit** | $                                                                | 836     |        | $      | 735          |   |   |   |   |
|                              |                                                             |    |        |   |         |   |   |   |   |
|                              |                                                             |    |        |   |         |   |   |   |   |
|                              | **At**                                                           |    |
| *(In                millions)*    | **3/31/06**                                                      |    | **3/31/05** |   | **12/31/05** |   |
|                              |                                                             |    |        |   |         |   |   |   |   |
| **Total                assets**   | $                                                                | 158,508 |        | $      | 149,912      |   | $ | 158,829 |   |

**GE      Industrial**

|                                                              | **Three                months ended****March                31** |   |     |   |   |
|-------------------------------------------------------------------|------------------------------------------------------------------|--------|----------|--------|--------|
| *(In                millions)*                                    | **2006**                                                         |   | **2005** |   |   |   |   |
|                                                              |                                                             |   |     |   |   |   |   |   |   |
| **Revenues**                                                      | $                                                                | 8,140  |     | $      | 7,668  |   |   |   |   |
| Less                portion of GE Industrial not included in GECS |                                                             | (6,506 | )        |   | (6,094 | ) |   |   |   |
| Total                revenues in GECS                             | $                                                                | 1,634  |     | $      | 1,574  |   |   |   |   |
|                                                              |                                                             |   |     |   |   |   |   |   |   |
| **Segment                profit**                                 | $                                                                | 600    |     | $      | 526    |   |   |   |   |
| Less                portion of GE Industrial not included in GECS |                                                             | (584   | )        |   | (516   | ) |   |   |   |
| Total                segment profit in GECS                       | $                                                                | 16     |     | $      | 10     |   |   |   |   |
|                                                              |                                                             |   |     |   |   |   |   |   |   |
| **Revenues                in GE**                                 |                                                             |   |     |   |   |   |   |   |   |
| Consumer                & Industrial                          | $                                                                | 3,534  |     | $      | 3,261  |   |   |   |   |
| Equipment                Services                                 |                                                             | 1,634  |     |   | 1,574  |   |   |   |   |
| Plastics                                                          |                                                             | 1,644  |     |   | 1,648  |   |   |   |   |
|                                                              |                                                             |   |     |   |   |   |   |   |   |
| **Segment                profit in GE**                           |                                                             |   |     |   |   |   |   |   |   |
| Consumer                & Industrial                          | $                                                                | 220    |     | $      | 165    |   |   |   |   |
| Equipment                Services                                 |                                                             | 16     |     |   | 10     |   |   |   |   |
| Plastics                                                          |                                                             | 225    |     |   | 240    |   |   |   |   |

----

**GE      Infrastructure**

|                                                                  | **Three                months ended****March                31** |   |     |   |   |
|-----------------------------------------------------------------------|------------------------------------------------------------------|--------|----------|--------|--------|
| *(In                millions)*                                        | **2006**                                                         |   | **2005** |   |   |   |   |
|                                                                  |                                                             |   |     |   |   |   |   |   |   |
| **Revenues**                                                          | $                                                                | 10,152 |     | $      | 9,374  |   |   |   |   |
| Less                portion of GE Infrastructure not included in GECS |                                                             | (8,849 | )        |   | (8,281 | ) |   |   |   |
| Total                revenues in GECS                                 | $                                                                | 1,303  |     | $      | 1,093  |   |   |   |   |
|                                                                  |                                                             |   |     |   |   |   |   |   |   |
| **Segment                profit**                                     | $                                                                | 1,703  |     | $      | 1,540  |   |   |   |   |
| Less                portion of GE Infrastructure not included in GECS |                                                             | (1,351 | )        |   | (1,266 | ) |   |   |   |
| Total                segment profit in GECS                           | $                                                                | 352    |     | $      | 274    |   |   |   |   |
|                                                                  |                                                             |   |     |   |   |   |   |   |   |
| **Revenues                in GE**                                     |                                                             |   |     |   |   |   |   |   |   |
| Aviation                                                              | $                                                                | 3,041  |     | $      | 2,590  |   |   |   |   |
| Aviation                Financial Services                            |                                                             | 934    |     |   | 817    |   |   |   |   |
| Energy                                                                |                                                             | 3,835  |     |   | 3,951  |   |   |   |   |
| Energy                Financial Services                              |                                                             | 301    |     |   | 228    |   |   |   |   |
| Oil                & Gas                                          |                                                             | 772    |     |   | 641    |   |   |   |   |
| Transportation                                                        |                                                             | 1,023  |     |   | 756    |   |   |   |   |
|                                                                  |                                                             |   |     |   |   |   |   |   |   |
| **Segment                profit in GE**                               |                                                             |   |     |   |   |   |   |   |   |
| Aviation                                                              | $                                                                | 645    |     | $      | 527    |   |   |   |   |
| Aviation                Financial Services                            |                                                             | 206    |     |   | 163    |   |   |   |   |
| Energy                                                                |                                                             | 436    |     |   | 577    |   |   |   |   |
| Energy                Financial Services                              |                                                             | 117    |     |   | 94     |   |   |   |   |
| Oil                & Gas                                          |                                                             | 55     |     |   | 27     |   |   |   |   |
| Transportation                                                        |                                                             | 204    |     |   | 82     |   |   |   |   |

----

**Discontinued      Insurance Operations **

|                                                                       | **Three                months ended****March                31** |   |     |   |   |
|----------------------------------------------------------------------------|------------------------------------------------------------------|--------|----------|--------|--------|
| *(In                millions)*                                             | **2006**                                                         |   | **2005** |   |   |   |   |
|                                                                       |                                                             |   |     |   |   |   |   |   |   |
| Earnings                in GECS from discontinued operations, net of taxes | $                                                                | 263    |     | $      | 405    |   |   |   |   |

----

**B.      Statement of Financial Position**

**Overview      of Financial Position**

| · | During                the first quarter of 2006, we completed the sale of our remaining                18%                investment in Genworth common stock and we initiated a plan to sell                GE                Life. We have separately reported the assets and liabilities related                to                these discontinued operations for all periods presented. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | The                U.S. dollar was stronger at March 31, 2006, than it was at December                31,                2005, reducing the translated levels of our non-U.S. dollar assets                and                liabilities. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Investment      securities**

**Financing      receivables **

|                                 | **Delinquency                rates at** |    |
|--------------------------------------|-----------------------------------------|---------|
|                                 | **3/31/06**                             | **(a)** | **12/31/05** |   | **3/31/05** |   |
|                                 |                                    |    |   |   |   |   |
| GE                Commercial Finance | 1.31                                    | %       | 1.31 | % | 1.54 | % |
| GE                Consumer Finance   | 5.14                                    |    | 5.08 |   | 5.18 |   |
|                                 |                                    |    |   |   |   |   |

| (a) | Subject                to update. |   |
|-----|-----------------------------------|--------|

----

**C.      Debt Instruments**

**Item      4. Controls and Procedures**

**Part      II. Other Information**

**Item      6. Exhibits**

|   | Exhibit                10     | First                and Second Amendments to the Transaction Agreement by and between                Swiss                Reinsurance Company and General Electric Company, dated April 20,                2006                (Incorporated by reference to Exhibit 10 of General Electric Company’s                Form 10-Q Report for the period ended March 31, 2006).  |
|--------|------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | Exhibit                12     | Computation                of Ratio of Earnings to Fixed Charges and Computation of Ratio of                Earnings                to Combined Fixed Charges and Preferred Stock Dividends.*                                                                                                                                                                                       |
|   | Exhibit                31(a)  | Certification                Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange                Act of 1934, as Amended.*                                                                                                                                                                                                                                       |
|   | Exhibit                31(b)  | Certification                Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange                Act of 1934, as Amended.*                                                                                                                                                                                                                                       |
|   | Exhibit                32     | Certification                Pursuant to 18 U.S.C. Section 1350.*                                                                                                                                                                                                                                                                                                                   |
|   | Exhibit                99     | Financial                Measures that Supplement Generally Accepted Accounting                Principles.*                                                                                                                                                                                                                                                                         |
|   |                               | * Filed electronically              herewith.                                                                                                                                                                                                                                                                                                                                            |

----

**Signatures**

| General                Electric Capital Services, Inc.(Registrant)   |
|--------------------------------------------------------------------------------|
| April                26, 2006                                                  |   | /s/                Philip D. Ameen |   |
| Date                                                                           |   | Philip                D. AmeenSenior                Vice President and ControllerDuly                Authorized Officer and Principal Accounting                Officer |

----