UNITED STATES SECURITIES AND EXCHANGE COMMISSION

                             WASHINGTON, D.C. 20549

                           --------------------------
                                    FORM 10-Q
                           --------------------------

                                     -------
           |X| QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                                     -------
                         SECURITIES EXCHANGE ACT OF 1934

                  For the quarterly period ended June 30, 2001
                                  -------------

                                       OR

                                     -------
            TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                                     -------
                         SECURITIES EXCHANGE ACT OF 1934

               For the transition period from _______to _________



                         Commission file number 0-14804


                     General Electric Capital Services, Inc.
             (Exact name of registrant as specified in its charter)

               Delaware                             06-1109503
      (State or other jurisdiction of            (I.R.S. Employer
       incorporation or organization)            Identification No.)

   260 Long Ridge Road, Stamford, Connecticut           06927
   (Address of principal executive offices)           (Zip Code)

                                 (203) 357-4000
              (Registrant's telephone number, including area code)



Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the  preceding 12 months (or for such  shorter  period that the  registrant  was
required  to file  such  reports),  and  (2) has  been  subject  to such  filing
requirements for the past 90 days. Yes |X| No

At July 23, 2001, 1,012 shares of common stock with a par value of $1,000 were
outstanding.

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.


<PAGE>


                                TABLE OF CONTENTS

<TABLE>
<CAPTION>

                                                                                                          Page
                                                                                                   -------------------

<S>                                                                                                <C>
PART I - FINANCIAL INFORMATION.

Item 1.       Financial Statements ..........................................................                 1

Item 2.       Management's Discussion and Analysis of Results of Operations .................                 6

Exhibit 12.   Computation of Ratio of Earnings to Fixed Charges and Computation of
              Ratio of Earnings to Combined Fixed Charges and Preferred Stock Dividends .....                 9


PART II - OTHER INFORMATION.

Item 6.       Exhibits and Reports on Form 8-K ..............................................                10

Signatures ..................................................................................                11


</TABLE>





<PAGE>




                         PART I - FINANCIAL INFORMATION

Item 1. Financial Statements.

       GENERAL ELECTRIC CAPITAL SERVICES, INC. AND CONSOLIDATED AFFILIATES

              Condensed Statement of Current and Retained Earnings

                                   (Unaudited)

<TABLE>
<CAPTION>

                                                         Three Months Ended                 Six Months Ended
                                                   --------------------------------  --------------------------------

                                                     June 30,          July 1,         June 30,          July 1,
 (In millions)                                         2001             2000             2001             2000
                                                   ---------------  ---------------  ---------------  ---------------

 <S>                                               <C>              <C>              <C>              <C>
 Revenues
 Revenues from services .......................... $    13,439      $    14,065      $    27,094      $    27,513
 Sales of goods ..................................         960            2,405            2,028            4,638
                                                     --------------- ---------------  --------------- ---------------

                                                        14,399           16,470           29,122           32,151
                                                   ---------------  ---------------  ---------------  ---------------

 Expenses
 Interest ........................................       2,671            2,811            5,569            5,381
 Operating and administrative ....................       3,960            4,725            8,129            9,578
 Cost of goods sold ..............................         866            2,238            1,827            4,308
 Insurance losses and policyholder and annuity
    benefits .....................................       3,712            3,852            7,235            6,782
 Provision for losses on financing receivables ...         496              421              979              942
 Depreciation and amortization of buildings and
   equipment and equipment on operating leases ...         797              673            1,590            1,614
 Minority interest in net earnings of consolidated
   affiliates ....................................          42               53               99              103
                                                   ---------------  ---------------  ---------------  ---------------

                                                        12,544           14,773           25,428           28,708
                                                   ---------------  ---------------  ---------------  ---------------

 Earnings
 Earnings before income taxes and cumulative
      effect of changes in accounting principle...       1,855            1,697            3,694            3,443
 Provision for income taxes.......................        (378)            (420)            (816)            (956)
                                                   ---------------  ---------------  ---------------  ---------------
 Earnings before cumulative effect of changes in
      accounting principle                               1,477            1,277            2,878            2,487

  Cumulative effect of changes in accounting
       principle..................................           -                -             (169)               -
                                                   ---------------  ---------------  ---------------  ---------------
 Net Earnings ....................................       1,477            1,277            2,709            2,487
 Dividends .......................................        (508)            (441)          (1,006)            (882)
 Retained earnings at beginning of period ........      21,956           18,621           21,222           17,852
                                                   ---------------  ---------------  ---------------  ---------------

 Retained earnings at end of period .............. $    22,925      $    19,457      $    22,925      $    19,457
                                                   ===============  ===============  ===============  ===============


</TABLE>



See Notes to Condensed, Consolidated Financial Statements.


<PAGE>



       GENERAL ELECTRIC CAPITAL SERVICES, INC. AND CONSOLIDATED AFFILIATES

                    Condensed Statement of Financial Position
<TABLE>
<CAPTION>

                                                                                        June 30,        December 31,
 (In millions)                                                                            2001              2000
                                                                                    ----------------  -----------------

                                                                                      (Unaudited)
 <S>                                                                                <C>               <C>
 Assets
 Cash and equivalents ............................................................. $        5,956    $     6,052
 Investment securities ............................................................         93,532         90,330
 Financing receivables:
    Time sales and loans, net of deferred income...................................         98,127         96,270
    Investment in financing leases, net of deferred income.........................         51,695         51,063
                                                                                    ----------------  -----------------
                                                                                           149,822        147,333
    Allowance for losses on financing receivables .................................         (3,971)        (4,034)
                                                                                    ----------------  -----------------

       Financing receivables - net ................................................        145,851        143,299
 Insurance receivables - net.......................................................         22,474         23,802
 Other receivables - net ..........................................................         12,811         13,288
 Inventories ......................................................................            319            666
 Equipment on operating leases (at cost), less accumulated
   amortization of $8,572 and $7,901 ..............................................         25,361         24,147
 Intangible assets ................................................................         14,636         15,017
 Other assets .....................................................................         55,421         54,035
                                                                                    ----------------  -----------------
         Total assets ............................................................. $      376,361     $  370,636
                                                                                    ================  =================

 Liabilities and share owners' equity
 Short-term borrowings ............................................................ $      129,215     $  123,992
 Long-term borrowings:
    Senior ........................................................................         76,926         80,383
    Subordinated ..................................................................            996            996
 Insurance liabilities, reserves and annuity benefits .............................        105,932        106,150
 Other liabilities ................................................................         27,880         23,887
 Deferred income taxes ............................................................          7,566          8,238
                                                                                    ----------------  -----------------
         Total liabilities ........................................................        348,515        343,646
                                                                                    ----------------  -----------------
 Minority interest in equity of consolidated affiliates ...........................          3,943          3,968
                                                                                    ----------------  -----------------
 Accumulated gains/(losses) - net
     Investment securities.........................................................            (62)             4
     Currency translation adjustments .............................................           (799)          (957)
     Derivatives qualifying as hedges...............................................          (927)             -
                                                                                    ----------------  -----------------

 Accumulated non-owner changes in share owners' equity  ...........................         (1,788)          (953)
 Capital stock ....................................................................             11             11
 Additional paid-in capital .......................................................          2,755          2,742
 Retained earnings ................................................................         22,925         21,222
                                                                                    ----------------  -----------------
         Total share owners' equity ...............................................         23,903         23,022
                                                                                    ----------------  -----------------

         Total liabilities and share owners' equity ............................... $      376,361     $  370,636
                                                                                    ================  =================
</TABLE>


See Notes to Condensed, Consolidated Financial Statements.


<PAGE>



       GENERAL ELECTRIC CAPITAL SERVICES, INC. AND CONSOLIDATED AFFILIATES

                        Condensed Statement of Cash Flows

                                   (Unaudited)
<TABLE>
<CAPTION>

                                                                                             Six Months Ended
                                                                                       ------------------------------

                                                                                        June 30,         July 1,
 (In millions)                                                                            2001             2000
                                                                                      --------------   --------------

 <S>                                                                                  <C>              <C>
 Cash Flows From Operating Activities
 Net earnings .....................................................................   $     2,709     $      2,487
 Adjustments to reconcile net earnings to cash provided from
    operating activities:
      Cumulative effect of changes in accounting principle.........................           169                -
      Provision for losses on financing receivables ...............................           979              942
      Depreciation and amortization of buildings and equipment and
        equipment on operating leases .............................................         1,590            1,614
      Other - net .................................................................         4,831           (4,201)
                                                                                      --------------   --------------
         Cash from operating activities ...........................................        10,278              842
                                                                                      --------------   --------------

 Cash Flows From Investing Activities
 Increase in loans to customers ...................................................       (64,610)         (49,877)
 Principal collections from customers - loans .....................................        62,060           46,849
 Investment in equipment for financing leases .....................................        (7,832)          (9,160)
 Principal collections from customers - financing leases ..........................         8,157            7,218
 Net change in credit card receivables ............................................         1,219             (623)
 Buildings and equipment and equipment on operating leases:
      - additions .................................................................        (6,394)          (5,097)
      - dispositions ..............................................................         3,511            3,211
 Payments for principal businesses purchased, net of cash acquired ................        (3,280)            (315)
 Purchases of securities by insurance and annuity businesses ......................       (23,812)         (17,083)
 Dispositions and maturities of securities by insurance and
    annuity businesses ............................................................        20,080           13,264
 Other - net ......................................................................        (1,015)             981
                                                                                      --------------   --------------
         Cash used for investing activities .......................................       (11,916)         (10,632)
                                                                                      --------------   --------------

 Cash Flows From Financing Activities
 Net change in borrowings (maturities 90 days or less) ............................           431              525
 Newly issued debt  -  short-term (maturities 91-365 days) ........................         2,333            3,859
                     -  long-term (longer than one year) ..........................         8,848           15,455
 Proceeds - non-recourse, leveraged lease debt ....................................           856              383
 Repayments and other reductions:
                    -  short-term (maturities 91-365 days) ........................        (5,895)         (16,896)
                    -  long-term (longer than one year) ...........................        (3,878)          (1,555)
 Principal payments - non-recourse, leveraged lease debt ..........................          (170)            (118)
 Proceeds from sales of investment contracts ......................................         3,610            4,139
 Cash received upon assumption of Toho Mutual Life Insurance Company
      insurance liabilities........................................................             -           13,177
 Redemption of investment contracts ...............................................        (3,587)          (4,657)
 Dividends paid ...................................................................        (1,006)            (882)
                                                                                      --------------   --------------
         Cash from financing activities ...........................................         1,542           13,430
                                                                                      --------------   --------------

 Increase (Decrease) in Cash and Equivalents ......................................           (96)           3,640
 Cash and Equivalents at Beginning of Period ......................................         6,052            6,931
                                                                                      --------------   --------------

 Cash and Equivalents at End of Period ............................................   $     5,956     $     10,571
                                                                                      ==============   ==============
</TABLE>

See Notes to Condensed, Consolidated Financial Statements.


<PAGE>


       GENERAL ELECTRIC CAPITAL SERVICES, INC. AND CONSOLIDATED AFFILIATES

              Notes to Condensed, Consolidated Financial Statements
                                   (Unaudited)

1. The  accompanying  condensed  quarterly  financial  statements  represent the
adding   together  of  General   Electric   Capital   Services,   Inc.  and  all
majority-owned and controlled affiliates  (collectively called "the Corporation"
or  "GECS").  All  significant  transactions  among the parent and  consolidated
affiliates   have  been   eliminated.   Certain  prior  period  data  have  been
reclassified to conform to the current period presentation.

2. The condensed,  consolidated  quarterly  financial  statements are unaudited.
These  statements  include  all  adjustments  (consisting  of  normal  recurring
accruals)  considered necessary by management to present a fair statement of the
results of operations,  financial  position and cash flows. The results reported
in these condensed,  consolidated financial statements should not be regarded as
necessarily indicative of results that may be expected for the entire year.

3. The Financial  Accounting  Standards Board ("FASB") issued, then subsequently
amended,   Statement  of  Financial   Accounting  Standards  ("SFAS")  No.  133,
Accounting  for  Derivative  Instruments  and Hedging  Activities,  which became
effective  for the  Corporation  on  January 1, 2001.  Under  SFAS No.  133,  as
amended, all derivative  instruments  (including certain derivative  instruments
embedded in other  contracts)  are recognized in the balance sheet at their fair
values and changes in fair value are recognized immediately in earnings,  unless
the  derivatives  qualify  as hedges  of  future  cash  flows.  For  derivatives
qualifying as hedges of future cash flows,  the effective  portion of changes in
fair value is recorded  temporarily in equity, then recognized in earnings along
with the related effects of the hedged items. Any ineffective portion of a hedge
is reported in earnings as it occurs.

The nature of the Corporation's  business  activities  necessarily  involves the
management of various  financial and market  risks,  including  those related to
changes in interest rates, equity prices, currency exchange rates, and commodity
prices. As discussed more fully in notes 1, 10 and 20 of the 2000 Form 10-K, the
Corporation  uses  derivative  financial  instruments  to mitigate or  eliminate
certain of those risks. The January 1, 2001,  accounting  change described above
affected only the pattern and timing of non-cash accounting recognition.

At January 1, 2001,  the  Corporation's  financial  statements  were adjusted to
record a cumulative effect of adopting this accounting change, as follows:


(In millions)                                             Earnings       Equity
                                                          -------       -------

Adjustment to fair value of derivatives (a) ........      $   (77)      $(1,374)
Income tax effects .................................           28           525
                                                          -------       -------
Total ..............................................      $   (49)      $  (849)
                                                          =======       =======
(a) For earnings effect, amount shown is net of adjustment to hedged item.

A reconciliation of current period changes for the first six months of 2001, net
of applicable  income taxes,  in the separate  component of share owners' equity
labeled "derivatives qualifying as hedges" follows.

(In millions)

Transition adjustment as of January 1, 2001 ....................          $(849)
Declines in fair value - net ...................................           (173)
Reclassifications to earnings - net ............................             95
                                                                          -----
Balance at June 30, 2001 .......................................          $(927)
                                                                          =====


The  cumulative  effect on share owners'  equity was primarily  attributable  to
marking  to  market  forward  and swap  contracts  used to  hedge  variable-rate
borrowings.  Decreases in the fair values of these instruments were attributable
to declines in interest rates since inception of the hedging arrangements.  As a
matter of policy, the Corporation ensures that funding,  including the effect of
derivatives,   of  its  lending  and  other   financing   asset   positions  are
substantially matched in character (e.g., fixed vs. floating) and duration. As a
result, declines in the fair values of these effective derivatives are offset by
unrecognized  gains on the related financing assets and hedged items, and future
net  earnings  will not be subject to  volatility  arising  from  interest  rate
changes.

<PAGE>

4. In  November  2000,  the  Emerging  Issues  Task Force of the FASB  reached a
consensus on impairment  accounting  for retained  beneficial  interests  ("EITF
99-20").  Under this consensus,  impairment on certain  beneficial  interests in
securitized  assets must be recognized  when (1) the asset's fair value is below
its carrying  value,  and (2) there has been an adverse change in estimated cash
flows.  Previously,  impairment on such assets was  recognized  when the asset's
carrying value exceeded  estimated cash flows  discounted at a risk free rate of
return.  The effect of  adopting  EITF 99-20 at January 1, 2001,  was a one-time
reduction of net earnings of $120  million,  net of income taxes of $64 million.
This accounting change did not involve cash, and management expects that it will
have no more than a modest effect on future results.

5. A summary of increases/(decreases) in share owners' equity that do not result
directly from transactions  with share owners,  net of income taxes, is provided
below.

<TABLE>
<CAPTION>

                                                                                      Three Months Ended
                                                                          -------------------------------------------

     (In millions)                                                          June 30, 2001          July 1, 2000
                                                                         ---------------------  ---------------------
     <S>                                                                 <C>                    <C>
     Net earnings  .....................................................        $    1,477              $   1,277
     Investing securities ..............................................              (982)                  (771)
     Currency translation adjustments ..................................               (48)                  (100)
     Derivatives qualifying as hedges...................................               347                      -
                                                                         ---------------------  ---------------------
     Total .............................................................          $    794               $    406
                                                                         =====================  =====================

                                                                                       Six Months Ended
                                                                          -------------------------------------------

                                                                            June 30, 2001          July 1, 2000
                                                                         ---------------------  ---------------------

     Net earnings  .....................................................        $    2,709               $  2,487
     Investment securities..............................................               (66)                  (840)
     Currency translation adjustments ..................................               158                   (210)
     Derivatives qualifying as hedges...................................               (78)                     -
     Cumulative effect on share owners' equity of adopting FAS 133......              (849)                     -
                                                                         ---------------------  ---------------------
     Total .............................................................        $    1,874               $  1,437
                                                                         =====================  =====================
</TABLE>


6. Revenues and net earnings before  accounting  changes of the Corporation,  by
operating segment, for the three and six months ended June 30, 2001, and July 1,
2000, can be found in the table on page 7 of this report.



<PAGE>


Item  2.  Management's Discussion and Analysis of Results of Operations.

Overview

The Corporation's net earnings before cumulative effect of changes in accounting
principle (discussed in notes 3 and 4 to the condensed,  consolidated  financial
statements) for the first six months of 2001 were $2,878 million, a $391 million
(16%)  increase  over the first six months of 2000.  The results  reflected  the
globalization  and  diversity  of  the  Corporation's  businesses,  with  strong
double-digit  increases  in  the  Consumer  Services  and  Equipment  Management
segments.

Operating Results

Total revenues  decreased  $3,029 million (9%) to $29,122  million for the first
six months of 2001,  compared  with $32,151  million for the first six months of
2000. This decrease  primarily  resulted from the  deconsolidation of Montgomery
Wards, LLC ("Wards"), volume declines in the information technology products and
services  businesses,  reduced  asset  gains at GE  Equity as the  business  was
realigned,  and the planned  transition of restructured  insurance policies from
Toho  Mutual  Life  Insurance  Company  ("Toho")  in the  consumer  savings  and
insurance business. These factors were partially offset by growth in origination
volume  in  the  Mid-Market  Financing,   Specialty  Insurance  and  Specialized
Financing segments.

Interest  expense  on  borrowings  for the first six  months of 2001 was  $5,569
million, 3% higher than for the first six months of 2000. The increase reflected
the effects of higher average borrowings used to finance asset growth, partially
offset by the effects of lower average  interest  rates.  The average  composite
interest rate on the  Corporation's  borrowings for the first six months of 2001
was 5.60% compared with 5.67% in the first six months of 2000.

Operating  and  administrative  expenses  were $8,129  million for the first six
months of 2001, a 15% decrease  from the first six months of 2000.  The decrease
primarily  reflected  productivity  gains in the Consumer Services and Equipment
Management segments and the deconsolidation of Wards.

Cost of goods sold is associated with activities of the  Corporation's  computer
equipment distribution business and former retail operations. This cost amounted
to $1,827 million for the first six months of 2001, compared with $4,308 million
for the first six  months  of 2000.  The  decrease  primarily  reflected  volume
declines at the information  technology products and services businesses and the
deconsolidation of Wards.

Insurance losses and policyholder and annuity benefits increased $453 million to
$7,235  million  for the first six months of 2001,  compared  with the first six
months of 2000.  The  increase  primarily  reflected  the  effects  of growth in
premium volume throughout the period and business acquisitions.

Provision for losses on financing receivables was $979 million for the first six
months of 2001 compared with $942 million for the first six months of 2000. This
provision  is  principally  related to credit  cards and  personal  loans in the
Consumer Services segment, which are discussed below under Portfolio Quality.

Depreciation  and  amortization  of buildings  and  equipment  and  equipment on
operating  leases  decreased to $1,590 million for the first six months of 2001,
compared with $1,614  million for the first six months of 2000. The decrease was
principally  the  result  of the  deconsolidation  of Wards  and  reduced  asset
write-downs.

Provision for income taxes was $816 million for the first six months of 2001 (an
effective  tax rate of  22.1%),  compared  with $956  million  for the first six
months of 2000 (an  effective tax rate of 27.8%).  The lower  effective tax rate
primarily  reflected  one-time  tax  benefits  with  respect  to  the  Equipment
Management segment.





<PAGE>


Operating Segments

Revenues  and net earnings  before  cumulative  effect of changes in  accounting
principle of the Corporation, by operating segment, for the three and six months
ended June 30, 2001 and July 1, 2000 are summarized and discussed below.

<TABLE>
<CAPTION>

                                                         Three Months Ended                 Six Months Ended
                                                   --------------------------------  --------------------------------

                                                     June 30,          July 1,         June 30,          July 1,
(In millions)                                          2001             2000             2001             2000
                                                   ---------------  ---------------  ---------------  ---------------
<S>                                                <C>              <C>              <C>              <C>
Revenues
Consumer Services ................................ $     5,847       $    6,263      $    11,756       $   11,774
Equipment Management .............................       2,880            3,664            5,978            7,397
Mid-Market Financing .............................       1,500            1,307            2,940            2,563
Specialized Financing ............................       1,130            1,406            2,473            3,122
Specialty Insurance ..............................       2,981            3,025            5,869            5,627
All other ........................................          61              805              106            1,668
                                                   ---------------  ---------------  ---------------  ---------------
Total revenues ................................... $    14,399       $   16,470      $    29,122       $   32,151
                                                   ===============  ===============  ===============  ===============


Net earnings before accounting changes
Consumer Services ................................ $       561           $  352      $     1,161      $       636
Equipment Management .............................         317              167              577              318
Mid-Market Financing .............................         159              147              316              299
Specialized Financing ............................         234              414              463            1,012
Specialty Insurance ..............................         259              293              507              491
All other ........................................         (53)             (96)            (146)            (269)
                                                   ---------------  ---------------  ---------------  ---------------
Total net earnings ............................... $     1,477      $     1,277      $     2,878      $     2,487
                                                   ===============  ===============  ===============  ===============
</TABLE>


Consumer Services  revenues  remained flat while net earnings  increased 83% for
the first six months of 2001 compared with the first six months of 2000. Revenue
increases as a result of volume growth in the U.S. consumer credit card business
and a combination  of acquisition  and asset growth in the consumer  savings and
insurance  business,  were  offset by the  planned  transition  of  restructured
insurance  policies  from  Toho and the  divestiture  of the  Mortgage  Services
business.  The  increase in net  earnings  was led by volume  growth in the U.S.
consumer credit card,  non-U.S.  consumer  finance and the consumer  savings and
insurance businesses, reduced residual losses in the U.S. auto finance business,
and the  divestiture of the Mortgage  Services  business,  which had experienced
losses in 2000.

Equipment  Management  revenues  decreased 19% for the first six months of 2001,
primarily as a result of volume declines in the information  technology products
and services businesses, partially offset by revenues associated with a contract
cancellation fee and volume growth in the satellite service business,  and asset
gains  and  volume  growth  in the  aviation  services  business.  Net  earnings
increased 81% for the first six months of 2001,  primarily  attributable  to tax
benefits from a restructuring at Penske, improved performance in the information
technology products and services businesses,  a contract cancellation fee at the
satellite  service  business,  and asset gains and volume growth in the aviation
services business.

Mid-Market  Financing  revenues  grew  15% in the  first  six  months  of  2001,
principally  reflecting the  combination of origination  growth and asset gains.
Net  earnings  increased  6% in the first six  months  of 2001,  primarily  from
increased  asset growth from  originations,  partially  offset by reduced  asset
gains.

Specialized  Financing  revenues decreased 21% and net earnings decreased 54% in
the first six months of 2001, principally reflecting the impact of reduced asset
gains on equity investments at GE Equity, partially offset by the combination of
higher  asset  gains  and  origination  growth at  Commercial  Real  Estate  and
Commercial Finance and origination growth at the Structured Finance Group.

Specialty  Insurance revenues grew 4% in the first six months of 2001,  compared
with the  corresponding  period in 2000, as a result of increased premium income
associated  with  origination  volume,  partially  offset by reduced  investment
gains. Net earnings increased 3% in the first six months of 2001,  compared with
the  corresponding  period  in  2000,  primarily  reflecting  growth  in  policy
origination,  the effects of discounting certain reinsurance reserves to reflect
timing of future  payment,  and a  favorable  settlement  of  certain  disputes,
partially offset by decreased current year investment gains.

All Other  decline in revenues  and decrease in net loss in the first six months
of 2001, were primarily the result of the deconsolidation of Wards.

Portfolio Quality

Financing  receivables  are the  financing  businesses'  largest asset and their
primary  source of revenues.  The  portfolio of  financing  receivables,  before
allowance for losses,  increased to $149.8 billion at June 30, 2001, from $147.3
billion  at the  end  of  2000,  primarily  reflecting  the  effects  of  higher
origination volume and acquisition growth,  partially offset by securitizations,
the  liquidating  U.S. auto finance  business  portfolio,  and foreign  currency
translation  on  Japanese  and  European  financing  receivables.   The  related
allowance for losses at June 30, 2001,  amounted to $4.0 billion (the same as at
the end of 2000) and represents  management's  best estimate of probable  losses
inherent in the portfolio. A discussion about the quality of certain elements of
the portfolio of financing  receivables  follows.  "Nonearning"  receivables are
those that are 90 days or more delinquent (or for which collection has otherwise
become doubtful) and  "reduced-earning"  receivables are commercial  receivables
whose terms have been restructured to a below-market yield.

Consumer  financing  receivables,  primarily  credit card and personal loans and
auto loans and leases,  were $44.0  billion at June 30, 2001, a decrease of $4.8
billion from year-end  2000.  Nonearning  consumer  receivables at June 30, 2001
were $1.1 billion, about 2.4% of outstandings, compared with $1.1 billion, about
2.3% of  outstandings at December 31, 2000.  Write-offs of consumer  receivables
increased  to $0.9 billion for the first six months of 2001  compared  with $0.7
billion for the first six months of 2000.  This increase is primarily  driven by
the increase in  delinquencies  in the  liquidating  Wards credit card portfolio
consistent with management's expectations.

Other  financing  receivables,  which  totaled  $105.8  billion at June 30, 2001
($98.5  billion  at  December  31,  2000),  consisted  of a diverse  commercial,
industrial  and  equipment  loan and lease  portfolio.  Related  nonearning  and
reduced-earning  receivables  were $1.3 billion at June 30, 2001,  about 1.2% of
outstandings, compared with $0.9 billion, about 1.0% of outstandings at year-end
2000.  The increase is primarily  the result of several large  bankruptcies  and
restructurings,  events that have been considered in establishing  the allowance
for losses.

Forward Looking Statements

This document includes certain  "forward-looking  statements" within the meaning
of the Private  Securities  Litigation  Reform Act of 1995. These statements are
based on management's  current  expectations  and are subject to uncertainty and
changes  in  circumstances.  Actual  results  may differ  materially  from these
expectations due to changes in global economic, business, competitive market and
regulatory factors.








<PAGE>


                                                                     EXHIBIT 12

       GENERAL ELECTRIC CAPITAL SERVICES, INC. AND CONSOLIDATED AFFILIATES

                Computation of Ratio of Earnings to Fixed Charges
                                       and
           Computation of Ratio of Earnings to Combined Fixed Charges
                         and Preferred Stock Dividends

                         Six Months Ended June 30, 2001
                                   (Unaudited)
<TABLE>
<CAPTION>

                                                                                                          Ratio of
                                                                                                         Earnings to
                                                                                                          Combined
                                                                                                            Fixed
                                                                                                         Charges and
                                                                                          Ratio of        Preferred
                                                                                        Earnings to         Stock
                                                                                       Fixed Charges      Dividends
(Dollar amounts in millions)                                                           --------------   --------------

 <S>                                                                                   <C>              <C>
 Net earnings .....................................................................         $2,709           $2,709
 Provision for income taxes .......................................................            816              816
 Minority interest in net earnings of consolidated affiliates .....................             99               99
                                                                                       --------------   --------------
 Earnings before provision for income taxes and minority interest .................          3,624            3,624
                                                                                       --------------   --------------
 Fixed charges:
    Interest ......................................................................          5,698            5,698
    One-third of rentals ..........................................................            157              157
                                                                                       --------------   --------------
 Total fixed charges ..............................................................          5,855            5,855
                                                                                       --------------   --------------

 Less interest capitalized, net of amortization ...................................            (56)             (56)
                                                                                       --------------   --------------
 Earnings before provision for income taxes and minority interest, plus
   fixed charges ..................................................................         $9,423           $9,423
                                                                                       ==============   ==============

 Ratio of earnings to fixed charges ...............................................           1.61
                                                                                       ==============


 Preferred stock dividend requirements ............................................                     $        --
 Ratio of earnings before provision for income taxes to net earnings ..............                            1.30
 Preferred stock dividend factor on pre-tax basis .................................                              --
 Fixed charges ....................................................................                           5,855
                                                                                                        --------------

 Total fixed charges and preferred stock dividend requirements ....................                          $5,855
                                                                                                        ==============


 Ratio of earnings to combined fixed charges and preferred stock dividends ........                            1.61
                                                                                                        ==============

</TABLE>


For purposes of computing the ratios,  fixed charges  consist of interest on all
indebtedness and one-third of rentals, which management believes is a reasonable
approximation of the interest factor of such rentals.




<PAGE>


                           PART II--OTHER INFORMATION


Item 6. Exhibits and Reports on Form 8-K.

     a.  Exhibits.

         Exhibit 12. Computation of ratio of earnings to fixed charges and
                     computation of ratio of earnings to combined fixed charges
                     and preferred stock dividends.


     b.  Reports on Form 8-K.

         None.




<PAGE>


                                   SIGNATURES

Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned thereunto duly authorized.


                            GENERAL ELECTRIC CAPITAL SERVICES, INC.
                            ---------------------------------------
                                          (Registrant)


Date:     July 23, 2001     By:             /s/ J.A. Parke
                            ----------------------------------------------
                            J.A. Parke,
                            Executive Vice President and Chief Financial Officer
                            (Principal Financial Officer)



Date:     July 23, 2001     By:             /s/ J.C. Amble
                            ----------------------------------------------
                            J.C. Amble,
                            Vice President and Controller
                            (Principal Accounting Officer)