----

----

**UNITED        STATES SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON,        D.C. 20549**

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

| (Mark                  One)                                                              |                                                         |
|------------------------------------------------------------------------------------------|--------------------------------------------------------------|
|                                                                                     |
| [X]                  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF                 |
| THE                  SECURITIES EXCHANGE ACT OF 1934                                     |
|                                                                                     |
| For                  the quarterly period ended June                  30, 2006           |
|                                                                                     |
| 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 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**

**þ**
** **
**¨**

| Large                  accelerated filer **¨** | Accelerated                  filer **¨** | Non-accelerated                  filer **þ** |
|-----------------------------------------------------|-----------------------------------------------|---------------------------------------------------|

**¨**
**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.**

----

**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 |   | 11     |
| Item                  4. Controls and Procedures                                                                                      |   | 22     |
|                                                                                                                                  |   |   |
| **Part                  II - Other Information**                                                                                      |   |   |
|                                                                                                                                  |   |   |
|       Item                1. Legal Proceedings                                                               |   | 22     |
| Item                  6. Exhibits                                                                                                     |   | 22     |
| Signatures                                                                                                                            |   | 23     |
|                                                                                                                                  |   |   |

**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****June                  30** |   | **Six                  months ended****June                  30** |   |
|-----------------------------------------------------------------------|---------------------------------------------------------------------|--------|-------------------------------------------------------------------|--------|
| *(In                  millions)*                                      | **2006**                                                            |   | **2005**                                                          |   | **2006** |   | **2005** |   |
|                                                                  |                                                                |   |                                                              |   |   |   |   |   |   |   |   |   |
| **Revenues**                                                          |                                                                |   |                                                              |   |   |   |   |   |   |   |   |   |
| Revenues                  from services (note 3)                      | $                                                                   | 14,595 |                                                              | $      | 13,297 |   | $ | 28,721 |   | $ | 26,228 |   |
| Sales                  of goods                                       |                                                                | 712    |                                                              |   | 664 |   |   | 1,267 |   |   | 1,338 |   |
| Total                  revenues                                       |                                                                | 15,307 |                                                              |   | 13,961 |   |   | 29,988 |   |   | 27,566 |   |
|                                                                  |                                                                |   |                                                              |   |   |   |   |   |   |   |   |   |
| **Costs                  and expenses**                               |                                                                |   |                                                              |   |   |   |   |   |   |   |   |   |
| Interest                                                              |                                                                | 4,202  |                                                              |   | 3,603 |   |   | 8,309 |   |   | 7,017 |   |
| Operating                  and administrative                         |                                                                | 4,274  |                                                              |   | 4,239 |   |   | 8,498 |   |   | 8,292 |   |
| Cost                  of goods sold                                   |                                                                | 659    |                                                              |   | 628 |   |   | 1,172 |   |   | 1,263 |   |
| Investment                  contracts, insurance losses and insurance |                                                                |   |                                                              |   |   |   |   |   |   |   |   |   |
| annuity                  benefits                                     |                                                                | 831    |                                                              |   | 850 |   |   | 1,636 |   |   | 1,716 |   |
| Provision                  for losses on financing receivables        |                                                                | 896    |                                                              |   | 958 |   |   | 1,718 |   |   | 1,860 |   |
| Depreciation                  and amortization                        |                                                                | 1,579  |                                                              |   | 1,404 |   |   | 3,078 |   |   | 3,041 |   |
| Minority                  interest in net earnings of consolidated    |                                                                |   |                                                              |   |   |   |   |   |   |   |   |   |
| affiliates                                                            |                                                                | 49     |                                                              |   | 41 |   |   | 124 |   |   | 71 |   |
| Total                  costs and expenses                             |                                                                | 12,490 |                                                              |   | 11,723 |   |   | 24,535 |   |   | 23,260 |   |
|                                                                  |                                                                |   |                                                              |   |   |   |   |   |   |   |   |   |
| **Earnings                  from continuing operations before**       |                                                                |   |                                                              |   |   |   |   |   |   |   |   |   |
| **income                  taxes**                                     |                                                                | 2,817  |                                                              |   | 2,238 |   |   | 5,453 |   |   | 4,306 |   |
| Provision                  for income taxes                           |                                                                | (317   | )                                                                 |   | (210 | ) |   | (683 | ) |   | (415 | ) |
|                                                                  |                                                                |   |                                                              |   |   |   |   |   |   |   |   |   |
| **Earnings                  from continuing operations**              |                                                                | 2,500  |                                                              |   | 2,028 |   |   | 4,770 |   |   | 3,891 |   |
| Earnings                  (loss) from discontinued operations, net of |                                                                |   |                                                              |   |   |   |   |   |   |   |   |   |
| taxes                  (note 2)                                       |                                                                | (2     | )                                                                 |   | 271 |   |   | 261 |   |   | 676 |   |
|                                                                  |                                                                |   |                                                              |   |   |   |   |   |   |   |   |   |
| **Net                  earnings**                                     |                                                                | 2,498  |                                                              |   | 2,299 |   |   | 5,031 |   |   | 4,567 |   |
| Dividends                                                             |                                                                | (4,186 | )                                                                 |   | (1,615 | ) |   | (7,730 | ) |   | (1,839 | ) |
| Retained                  earnings at beginning of period             |                                                                | 34,368 |                                                              |   | 38,020 |   |   | 35,379 |   |   | 35,976 |   |
| Retained                  earnings at end of period                   | $                                                                   | 32,680 |                                                              | $      | 38,704 |   | $ | 32,680 |   | $ | 38,704 |   |
|                                                                  |                                                                |   |                                                              |   |   |   |   |   |   |   |   |   |

----

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

**Condensed        Statement of Financial Position**

| *(In                  millions)*                                                                             | **June                  30, 2006** |    | **December                  31, 2005** |
|--------------------------------------------------------------------------------------------------------------|------------------------------------|---------|----------------------------------------|
|                                                                                                         | **(Unaudited)**                    |    |                                   |
| **Assets**                                                                                                   |                               |    |                                   |   |   |   |
| Cash                  and equivalents                                                                        | $                                  | 9,484   |                                   | $ | 7,130 |   |
| Investment                  securities                                                                       |                               | 44,559  |                                   |   | 41,710 |   |
| Inventories                                                                                                  |                               | 165     |                                   |   | 159 |   |
| Financing                  receivables - net (note 4)                                                        |                               | 303,899 |                                   |   | 287,639 |   |
| Other                  receivables                                                                           |                               | 20,282  |                                   |   | 18,625 |   |
| Buildings                  and equipment, less accumulated amortization of $21,800                           |                               |    |                                   |   |   |   |
| and                  $21,327                                                                                 |                               | 54,281  |                                   |   | 51,024 |   |
| Intangible                  assets - net (note 5)                                                            |                               | 24,864  |                                   |   | 23,791 |   |
| Other                  assets                                                                                |                               | 55,680  |                                   |   | 49,461 |   |
| Assets                  of discontinued operations (note 2)                                                  |                               | 15,090  |                                   |   | 61,066 |   |
| Total                  assets                                                                                | $                                  | 528,304 |                                   | $ | 540,605 |   |
|                                                                                                         |                               |    |                                   |   |   |   |
| **Liabilities                  and equity**                                                                  |                               |    |                                   |   |   |   |
| Borrowings                  (note 6)                                                                         | $                                  | 385,360 |                                   | $ | 362,069 |   |
| Accounts                  payable                                                                            |                               | 12,717  |                                   |   | 13,043 |   |
| Investment                  contracts, insurance liabilities and insurance annuity                  benefits |                               | 34,872  |                                   |   | 33,387 |   |
| Other                  liabilities                                                                           |                               | 17,679  |                                   |   | 16,787 |   |
| Deferred                  income taxes                                                                       |                               | 11,833  |                                   |   | 12,493 |   |
| Liabilities                  of discontinued operations (note 2)                                             |                               | 14,959  |                                   |   | 49,763 |   |
| Total                  liabilities                                                                           |                               | 477,420 |                                   |   | 487,542 |   |
|                                                                                                         |                               |    |                                   |   |   |   |
| Minority                  interest in equity of consolidated affiliates                                      |                               | 2,295   |                                   |   | 2,248 |   |
|                                                                                                         |                               |    |                                   |   |   |   |
| Capital                  stock                                                                               |                               | 11      |                                   |   | 11 |   |
| Accumulated                  gains (losses) - net                                                            |                               |    |                                   |   |   |   |
| Investment                  securities                                                                       |                               | 381     |                                   |   | 1,754 |   |
| Currency                  translation adjustments                                                            |                               | 3,435   |                                   |   | 2,287 |   |
| Cash                  flow hedges                                                                            |                               | (240    | )                                      |   | (813 | ) |
| Minimum                  pension liabilities                                                                 |                               | (192    | )                                      |   | (179 | ) |
| Additional                  paid-in capital                                                                  |                               | 12,514  |                                   |   | 12,376 |   |
| Retained                  earnings                                                                           |                               | 32,680  |                                   |   | 35,379 |   |
| Total                  shareowner’s equity                                                             |                               | 48,589  |                                   |   | 50,815 |   |
| Total                  liabilities and equity                                                                | $                                  | 528,304 |                                   | $ | 540,605 |   |
|                                                                                                         |                               |    |                                   |   |   |   |

----

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

**Condensed        Statement of Cash Flows**

**(Unaudited)**

| *(In                  millions)*                                                                                   | **Six                  months ended****June                  30** |     |
|--------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------|----------|
|                                                                                                               | **2006**                                                          |     | **2005** |   |
| **Cash                  flows - operating activities**                                                             |                                                              |     |   |   |   |   |
| Net                  earnings                                                                                      | $                                                                 | 5,031    |   | $ | 4,567 |   |
| Earnings                  from discontinued operations                                                             |                                                              | (261     | ) |   | (676 | ) |
| Adjustments                  to reconcile net earnings to cash provided from operating                  activities |                                                              |     |   |   |   |   |
| Depreciation                  and amortization                                                                     |                                                              | 3,078    |   |   | 3,041 |   |
| Decrease                  in accounts payable                                                                      |                                                              | (504     | ) |   | (71 | ) |
| Provision                  for losses on financing receivables                                                     |                                                              | 1,718    |   |   | 1,860 |   |
| All                  other operating activities                                                                    |                                                              | (280     | ) |   | (875 | ) |
| Cash                  from operating activities - continuing operations                                            |                                                              | 8,782    |   |   | 7,846 |   |
| Cash                  from (used for) operating activities - discontinued                  operations              |                                                              | (9       | ) |   | 2,407 |   |
| **Cash                  from operating activities**                                                                |                                                              | 8,773    |   |   | 10,253 |   |
|                                                                                                               |                                                              |     |   |   |   |   |
| **Cash                  flows - investing activities**                                                             |                                                              |     |   |   |   |   |
| Additions                  to buildings and equipment                                                              |                                                              | (5,887   | ) |   | (5,092 | ) |
| Dispositions                  of buildings and equipment                                                           |                                                              | 2,896    |   |   | 3,075 |   |
| Increase                  in loans to customers                                                                    |                                                              | (155,668 | ) |   | (130,556 | ) |
| Principal                  collections from customers - loans                                                      |                                                              | 141,991  |   |   | 134,137 |   |
| Investment                  in financing leases                                                                    |                                                              | (12,939  | ) |   | (11,415 | ) |
| Principal                  collections from customers - financing leases                                           |                                                              | 9,711    |   |   | 11,516 |   |
| Net                  change in credit card receivables                                                             |                                                              | 1,422    |   |   | 567 |   |
| Payments                  for principal businesses purchased                                                       |                                                              | (3,509   | ) |   | (6,842 | ) |
| Proceeds                  from sales of discontinued operations                                                    |                                                              | 8,112    |   |   | 3,403 |   |
| All                  other investing activities                                                                    |                                                              | (2,481   | ) |   | (2,584 | ) |
| Cash                  used for investing activities - continuing operations                                        |                                                              | (16,352  | ) |   | (3,791 | ) |
| Cash                  used for investing activities - discontinued operations                                      |                                                              | (2,558   | ) |   | (1,131 | ) |
| **Cash                  used for investing activities**                                                            |                                                              | (18,910  | ) |   | (4,922 | ) |
|                                                                                                               |                                                              |     |   |   |   |   |
| **Cash                  flows - financing activities**                                                             |                                                              |     |   |   |   |   |
| Net                  decrease in borrowings (maturities of 90 days or less)                                        |                                                              | (4,127   | ) |   | (5,801 | ) |
| Newly                  issued debt:                                                                                |                                                              |     |   |   |   |   |
| Short-term                  (91 to 365 days)                                                                       |                                                              | 422      |   |   | 651 |   |
| Long-term                  (longer than one year)                                                                  |                                                              | 43,472   |   |   | 39,596 |   |
| Non-recourse,                  leveraged lease                                                                     |                                                              | 80       |   |   | 131 |   |
| Repayments                  and other debt reductions:                                                             |                                                              |     |   |   |   |   |
| Short-term                  (91 to 365 days)                                                                       |                                                              | (19,211  | ) |   | (30,321 | ) |
| Long-term                  (longer than one year)                                                                  |                                                              | (2,054   | ) |   | (6,562 | ) |
| Non-recourse,                  leveraged lease                                                                     |                                                              | (522     | ) |   | (616 | ) |
| Dividends                  paid to shareowner                                                                      |                                                              | (7,590   | ) |   | (1,839 | ) |
| All                  other financing activities                                                                    |                                                              | (546     | ) |   | (860 | ) |
| Cash                  from (used for) financing activities - continuing                  operations                |                                                              | 9,924    |   |   | (5,621 | ) |
| Cash                  used for financing activities - discontinued operations                                      |                                                              | (256     | ) |   | (691 | ) |
| **Cash                  from (used for) financing activities**                                                     |                                                              | 9,668    |   |   | (6,312 | ) |
|                                                                                                               |                                                              |     |   |   |   |   |
| **Decrease                  in cash and equivalents**                                                              |                                                              | (469     | ) |   | (981 | ) |
| Cash                  and equivalents at beginning of year                                                         |                                                              | 10,106   |   |   | 12,367 |   |
| Cash                  and equivalents at June 30                                                                   |                                                              | 9,637    |   |   | 11,386 |   |
| Less                  cash and equivalents of discontinued operations at June 30                                   |                                                              | 153      |   |   | 3,852 |   |
| **Cash                  and equivalents of continuing operations at June                  30**                     | $                                                                 | 9,484    |   | $ | 7,534 |   |
|                                                                                                               |                                                              |     |   |   |   |   |

----

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

**Completed        sale of GE Insurance Solutions**

**Completed        sale of Genworth**

----

**Planned        sale of GE Life**

**Summarized        financial information**

|                                                           | **Three                  months ended****June                  30** |   | **Six                  months ended****June                  30** |   |
|----------------------------------------------------------------|---------------------------------------------------------------------|--------|-------------------------------------------------------------------|--------|
| *(In                  millions)*                               | **2006**                                                            |   | **2005**                                                          |   | **2006** |   | **2005** |   |
|                                                           |                                                                |   |                                                              |   |   |   |   |   |   |   |   |   |
| **Discontinued                  operations before disposal**   |                                                                |   |                                                              |   |   |   |   |   |   |   |   |   |
| Revenues                  from services                        | $                                                                   | 1,337  |                                                              | $      | 5,017 |   | $ | 3,682 |   | $ | 10,230 |   |
|                                                           |                                                                |   |                                                              |   |   |   |   |   |   |   |   |   |
| Earnings                  from discontinued operations before  |                                                                |   |                                                              |   |   |   |   |   |   |   |   |   |
| minority                  interest and income taxes            | $                                                                   | 203    |                                                              | $      | 636 |   | $ | 382 |   | $ | 1,334 |   |
| Minority                  interest                             |                                                                | -      |                                                              |   | 145 |   |   | - |   |   | 244 |   |
| Earnings                  from discontinued operations before  |                                                                |   |                                                              |   |   |   |   |   |   |   |   |   |
| income                  taxes                                  |                                                                | 203    |                                                              |   | 491 |   |   | 382 |   |   | 1,090 |   |
| Income                  tax expense                            |                                                                | (41    | )                                                                 |   | (220 | ) |   | (82 | ) |   | (500 | ) |
| Earnings                  from discontinued operations before  |                                                                |   |                                                              |   |   |   |   |   |   |   |   |   |
| disposal,                  net of taxes                        | $                                                                   | 162    |                                                              | $      | 271 |   | $ | 300 |   | $ | 590 |   |
|                                                           |                                                                |   |                                                              |   |   |   |   |   |   |   |   |   |
| **Disposal**                                                   |                                                                |   |                                                              |   |   |   |   |   |   |   |   |   |
| Gain                  (loss) on disposal before income taxes   | $                                                                   | (295   | )                                                                 | $      | - |   | $ | 11 |   | $ | 156 |   |
| Income                  tax benefit (expense)                  |                                                                | 131    |                                                              |   | - |   |   | (50 | ) |   | (70 | ) |
| Gain                  (loss) on disposal, net of taxes         | $                                                                   | (164   | )                                                                 | $      | - |   | $ | (39 | ) | $ | 86 |   |
|                                                           |                                                                |   |                                                              |   |   |   |   |   |   |   |   |   |
| Earnings                  (loss) from discontinued operations, |                                                                |   |                                                              |   |   |   |   |   |   |   |   |   |
| net                  of taxes                                  | $                                                                   | (2     | )                                                                 | $      | 271 |   | $ | 261 |   | $ | 676 |   |

|                                               | **At**      |   |
|----------------------------------------------------|-------------|--------|
| *(In                  millions)*                   | **6/30/06** |   | **12/31/05** |   |
|                                               |        |   |   |   |   |   |
| **Assets**                                         |        |   |   |   |   |   |
| Cash                  and equivalents              | $           | 153    |   | $ | 2,976 |   |
| Investment                  securities             |        | 11,776 |   |   | 37,633 |   |
| Other                  receivables                 |        | 472    |   |   | 13,915 |   |
| Other                                              |        | 2,689  |   |   | 6,542 |   |
| Assets                  of discontinued operations | $           | 15,090 |   | $ | 61,066 |   |

----

|                                                                                                         | **At**      |   |
|--------------------------------------------------------------------------------------------------------------|-------------|--------|
| *(In                  millions)*                                                                             | **6/30/06** |   | **12/31/05** |   |
|                                                                                                         |        |   |   |   |   |   |
| **Liabilities                  and equity**                                                                  |        |   |   |   |   |   |
| Investment                  contracts, insurance liabilities and insurance annuity                  benefits | $           | 13,018 |   | $ | 43,378 |   |
| Other                                                                                                        |        | 1,941  |   |   | 6,385 |   |
| Liabilities                  of discontinued operations                                                      | $           | 14,959 |   | $ | 49,763 |   |
|                                                                                                         |        |   |   |   |   |   |
| Total                  accumulated nonowner changes other than earnings                                      | $           | 168    |   | $ | 652 |   |

|                                                     | **Three                  months ended****June                  30** |   | **Six                  months ended****June                  30** |   |
|----------------------------------------------------------|---------------------------------------------------------------------|--------|-------------------------------------------------------------------|--------|
| *(In                  millions)*                         | **2006**                                                            |   | **2005**                                                          |   | **2006** |   | **2005** |   |
|                                                     |                                                                |   |                                                              |   |   |   |   |   |   |   |   |   |
| Interest                  on loans                       | $                                                                   | 5,627  |                                                              | $      | 5,238 |   | $ | 10,969 |   | $ | 10,101 |   |
| Operating                  lease rentals                 |                                                                | 3,152  |                                                              |   | 2,799 |   |   | 6,067 |   |   | 5,556 |   |
| Fees                                                     |                                                                | 1,009  |                                                              |   | 971 |   |   | 2,016 |   |   | 1,818 |   |
| Financing                  leases                        |                                                                | 1,025  |                                                              |   | 1,035 |   |   | 2,027 |   |   | 2,068 |   |
| Investment                  income                       |                                                                | 566    |                                                              |   | 587 |   |   | 1,226 |   |   | 1,242 |   |
| Premiums                  earned by insurance activities |                                                                | 485    |                                                              |   | 570 |   |   | 976 |   |   | 1,123 |   |
| Other                  income                            |                                                                | 2,731  |                                                              |   | 2,097 |   |   | 5,440 |   |   | 4,320 |   |
| Total                                                    | $                                                                   | 14,595 |                                                              | $      | 13,297 |   | $ | 28,721 |   | $ | 26,228 |   |

|                                                                    | **At**      |    |
|-------------------------------------------------------------------------|-------------|---------|
| *(In                  millions)*                                        | **6/30/06** |    | **12/31/05** |   |
|                                                                    |        |    |   |   |   |   |
| Loans,                  net of deferred income                          | $           | 240,838 |   | $ | 227,923 |   |
| Investment                  in financing leases, net of deferred income |        | 67,679  |   |   | 64,309 |   |
|                                                                    |        | 308,517 |   |   | 292,232 |   |
| Less                  allowance for losses                              |        | (4,618  | ) |   | (4,593 | ) |
| Financing                  receivables - net                            | $           | 303,899 |   | $ | 287,639 |   |

|                                                                    | **At**      |   |
|-------------------------------------------------------------------------|-------------|--------|
| *(In                  millions)*                                        | **6/30/06** |   | **12/31/05** |   |
|                                                                    |        |   |   |   |   |   |
| Loans,                  net of deferred income                          | $           | 13,728 |   | $ | 15,868 |   |
| Investment                  in financing leases, net of deferred income |        | 85     |   |   | 769 |   |
|                                                                    |        | 13,813 |   |   | 16,637 |   |
| Less                  allowance for losses                              |        | (34    | ) |   | (22 | ) |
| Financing                  receivables - net                            | $           | 13,779 |   | $ | 16,615 |   |

----

|                                                       | **At**      |   |
|------------------------------------------------------------|-------------|--------|
| *(In                  millions)*                           | **6/30/06** |   | **12/31/05** |   |
|                                                       |        |   |   |   |   |   |
| Goodwill                                                   | $           | 21,649 |   | $ | 21,337 |   |
| Intangible                  assets subject to amortization |        | 3,215  |   |   | 2,454 |   |
| Total                                                      | $           | 24,864 |   | $ | 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                                       |                            |   | 18 |   |   |   |   | 62 |   |   |   |   | (3 | ) |   |   |   | - |   |   |   | 77 |   |
| Currency                  exchange and other      |                            |   | 54 |   |   |   |   | 151 |   |   |   |   | 30 |   |   |   |   | - |   |   |   | 235 |   |
| Balance                  June 30                  |                            | $      | 10,693 |   |   |   | $ | 9,397 |   |   |   | $ | 1,433 |   |   |   | $ | 126 |   |   | $ | 21,649 |   |
|                                              |                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

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

**Intangible        Assets Subject to Amortization**

|                                              | **At**                          |
|---------------------------------------------------|---------------------------------|
|                                              | **6/30/06**                     |   | **12/31/05** |
| *(In                  millions)*                  | **Gross****carrying****amount** |   | **Accumulated****amortization** |   | **Net** |   | **Gross****carrying****amount** |   | **Accumulated****amortization** |   | **Net** |
|                                              |                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Capitalized                  software             | $                               | 1,577 |   | $ | (878 | ) | $ | 699 |   | $ | 1,477 |   | $ | (798 | ) | $ | 679 |
| Patents,                  licenses and trademarks |                            | 473 |   |   | (283 | ) |   | 190 |   |   | 497 |   |   | (272 | ) |   | 225 |
| All                  other                        |                            | 3,473 |   |   | (1,147 | ) |   | 2,326 |   |   | 2,565 |   |   | (1,015 | ) |   | 1,550 |
| Total                                             | $                               | 5,523 |   | $ | (2,308 | ) | $ | 3,215 |   | $ | 4,539 |   | $ | (2,085 | ) | $ | 2,454 |

----

|                                                     | **At**      |    |
|----------------------------------------------------------|-------------|---------|
| *(In                  millions)*                         | **6/30/06** |    | **12/31/05** |   |
|                                                     |        |    |   |   |   |   |
| **Short-Term                  Borrowings**               |        |    |   |   |   |   |
|                                                     |        |    |   |   |   |   |
| Commercial                  paper                        |        |    |   |   |   |   |
| U.S.                                                     |        |    |   |   |   |   |
| Unsecured                                                | $           | 63,305  |   | $ | 67,643 |   |
| Asset-backed(a)                                          |        | 7,620   |   |   | 9,267 |   |
| Non-U.S.                                                 |        | 22,845  |   |   | 20,456 |   |
| Current                  portion of long-term debt(b)(c) |        | 43,498  |   |   | 41,792 |   |
| Other                                                    |        | 19,059  |   |   | 18,514 |   |
| Total                                                    |        | 156,327 |   |   | 157,672 |   |
|                                                     |        |    |   |   |   |   |
| **Long-Term                  Borrowings**                |        |    |   |   |   |   |
|                                                     |        |    |   |   |   |   |
| Senior                  notes                            |        |    |   |   |   |   |
| Unsecured                                                |        | 205,296 |   |   | 180,546 |   |
| Asset-backed(d)                                          |        | 6,661   |   |   | 6,845 |   |
| Extendible                  notes(e)                     |        | 13,984  |   |   | 14,022 |   |
| Subordinated                  notes(f)                   |        | 3,092   |   |   | 2,984 |   |
| Total                                                    |        | 229,033 |   |   | 204,397 |   |
| **Total                  borrowings**                    | $           | 385,360 |   | $ | 362,069 |   |
|                                                     |        |    |   |   |   |   |

| (a)  | Entirely                  obligations of consolidated, liquidating securitization entities.                  See note                  8.                                                                                                                                     |
|-----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (b)  | Included                  short-term borrowings by consolidated, liquidating securitization                  entities                  of $700 million and $697 million at June 30, 2006, and December                  31, 2005,                  respectively. See note 8.  |
| (c)  | Included                  $250 million of subordinated notes guaranteed by GE at both June                  30, 2006,                  and December 31, 2005.                                                                                                                 |
| (d)  | Included                  asset-backed senior notes issued by consolidated, liquidating                  securitization entities of $5,536 million and $6,845 million at                  June 30,                  2006, and December 31, 2005, respectively. 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 June                  30, 2006,                  and December 31, 2005.                                                                                                                      |

|                                                    | **Three                  months ended****June                  30** |   | **Six                  months ended****June                  30** |   |
|---------------------------------------------------------|---------------------------------------------------------------------|--------|-------------------------------------------------------------------|--------|
| *(In                  millions)*                        | **2006**                                                            |   | **2005**                                                          |   | **2006** |   | **2005** |   |
|                                                    |                                                                |   |                                                              |   |   |   |   |   |   |   |   |   |
| Net                  earnings                           | $                                                                   | 2,498  |                                                              | $      | 2,299 |   | $ | 5,031 |   | $ | 4,567 |   |
| Investment                  securities - net            |                                                                | (668   | )                                                                 |   | 1,281 |   |   | (1,373 | ) |   | 582 |   |
| Currency                  translation adjustments - net |                                                                | 1,428  |                                                              |   | (2,492 | ) |   | 1,148 |   |   | (2,258 | ) |
| Cash                  flow hedges - net                 |                                                                | 267    |                                                              |   | (102 | ) |   | 573 |   |   | 357 |   |
| Minimum                  pension liabilities - net      |                                                                | (3     | )                                                                 |   | (5 | ) |   | (13 | ) |   | (11 | ) |
| Total                                                   | $                                                                   | 3,522  |                                                              | $      | 981 |   | $ | 5,366 |   | $ | 3,237 |   |

----

|                                      | **At**      |   |
|-------------------------------------------|-------------|--------|
| *(In                  millions)*          | **6/30/06** |   | **12/31/05** |   |
|                                      |        |   |   |   |   |   |
| Receivables                  secured by:  |        |   |   |   |   |   |
| Equipment                                 | $           | 10,201 |   | $ | 12,949 |   |
| Commercial                  real estate   |        | 12,122 |   |   | 13,010 |   |
| Residential                  real estate  |        | 7,478  |   |   | 8,882 |   |
| Other                  assets             |        | 14,206 |   |   | 12,869 |   |
| Credit                  card receivables  |        | 11,355 |   |   | 10,039 |   |
| Total                  securitized assets | $           | 55,362 |   | $ | 57,749 |   |

|                                      | **At**      |   |
|-------------------------------------------|-------------|--------|
| *(In                  millions)*          | **6/30/06** |   | **12/31/05** |   |
|                                      |        |   |   |   |   |   |
| Off-balance                  sheet(a)(b)  | $           | 40,493 |   | $ | 39,845 |   |
| On-balance                  sheet(c)      |        | 14,869 |   |   | 17,904 |   |
| Total                  securitized assets | $           | 55,362 |   | $ | 57,749 |   |
|                                      |        |   |   |   |   |   |

| (a)  | At                  June 30, 2006, and December 31, 2005, liquidity support amounted                  to $1,793                  million and $1,931 million, respectively. These amounts are net                  of $3,293                  million and $3,786 million, respectively, participated or deferred                  beyond                  one year. Credit support amounted to $5,138 million and $5,988                  million at                  June 30, 2006, and December 31, 2005, respectively.         |
|-----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (b)  | Liabilities                  for recourse obligations related to off-balance sheet assets amounted                  to                  $65 million and $93 million at June 30, 2006, and December 31,                  2005,                  respectively.                                                                                                                                                                                                                                                                     |
| (c)       | At                  June 30, 2006, and December 31, 2005, liquidity support amounted                  to $8,204                  million and $10,044 million, respectively. These amounts are net                  of $21                  million and $138 million, respectively, participated or deferred                  beyond                  one year. Credit support amounted to $3,830 million and $4,780                  million at                  June 30, 2006, and December 31, 2005,                  respectively. |

|                                                  | **At**      |   |
|-------------------------------------------------------|-------------|--------|
| *(In                  millions)*                      | **6/30/06** |   | **12/31/05** |   |
|                                                  |        |   |   |   |   |   |
| Financing                  receivables - net (note 4) | $           | 13,779 |   | $ | 16,615 |   |
| Other                                                 |        | 1,090  |   |   | 1,289 |   |
| Total                                                 | $           | 14,869 |   | $ | 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****June                  30** |    | **Six                  months ended****June                  30** |   |
|-------------------------------------------------------------------|---------------------------------------------------------------------|---------|-------------------------------------------------------------------|--------|
| *(In                  millions)*                                  | **2006**                                                            |    | **2005**                                                          |   | **2006** |   | **2005** |   |
|                                                              |                                                                |    |                                                              |   |   |   |   |   |   |   |   |   |
|                                                              |                                                                |    |                                                              |   |   |   |   |   |   |   |   |   |
| **Revenues**                                                      |                                                                |    |                                                              |   |   |   |   |   |   |   |   |   |
| GE                  Commercial Finance                            | $                                                                   | 5,527   |                                                              | $      | 4,929 |   | $ | 11,011 |   | $ | 10,001 |   |
| GE                  Consumer Finance                              |                                                                | 5,268   |                                                              |   | 4,928 |   |   | 10,358 |   |   | 9,617 |   |
| GE                  Industrial                                    |                                                                | 8,788   |                                                              |   | 8,253 |   |   | 16,928 |   |   | 15,921 |   |
| GE                  Infrastructure                                |                                                                | 11,332  |                                                              |   | 10,221 |   |   | 21,484 |   |   | 19,595 |   |
| Total                  segment revenues                           |                                                                | 30,915  |                                                              |   | 28,331 |   |   | 59,781 |   |   | 55,134 |   |
| GECS                  corporate items and eliminations(a)         |                                                                | 1,330   |                                                              |   | 1,195 |   |   | 2,500 |   |   | 2,372 |   |
| Total                  revenues                                   |                                                                | 32,245  |                                                              |   | 29,526 |   |   | 62,281 |   |   | 57,506 |   |
| Less                  portion of GE revenues not included in GECS |                                                                | (16,938 | )                                                                 |   | (15,565 | ) |   | (32,293 | ) |   | (29,940 | ) |
| Total                  revenues in GECS                           | $                                                                   | 15,307  |                                                              | $      | 13,961 |   | $ | 29,988 |   | $ | 27,566 |   |
|                                                              |                                                                |    |                                                              |   |   |   |   |   |   |   |   |   |
| **Segment                  profit**                               |                                                                |    |                                                              |   |   |   |   |   |   |   |   |   |
| GE                  Commercial Finance                            | $                                                                   | 1,057   |                                                              | $      | 872 |   | $ | 2,231 |   | $ | 1,798 |   |
| GE                  Consumer Finance                              |                                                                | 880     |                                                              |   | 735 |   |   | 1,716 |   |   | 1,470 |   |
| GE                  Industrial                                    |                                                                | 729     |                                                              |   | 635 |   |   | 1,329 |   |   | 1,161 |   |
| GE                  Infrastructure                                |                                                                | 2,107   |                                                              |   | 1,916 |   |   | 3,810 |   |   | 3,456 |   |
| Total                  segment profit                             |                                                                | 4,773   |                                                              |   | 4,158 |   |   | 9,086 |   |   | 7,885 |   |
| GECS                  corporate items and eliminations            |                                                                | 31      |                                                              |   | (2 | ) |   | (77 | ) |   | (84 | ) |
| Less                  portion of GE segment profit not included   |                                                                |    |                                                              |   |   |   |   |   |   |   |   |   |
| in                  GECS                                          |                                                                | (2,304  | )                                                                 |   | (2,128 | ) |   | (4,239 | ) |   | (3,910 | ) |
| Earnings                  in GECS from continuing operations      |                                                                | 2,500   |                                                              |   | 2,028 |   |   | 4,770 |   |   | 3,891 |   |
| Earnings                  (loss) in GECS from discontinued        |                                                                |    |                                                              |   |   |   |   |   |   |   |   |   |
| operations,                  net of taxes                         |                                                                | (2      | )                                                                 |   | 271 |   |   | 261 |   |   | 676 |   |
| Total                  net earnings in GECS                       | $                                                                   | 2,498   |                                                              | $      | 2,299 |   | $ | 5,031 |   | $ | 4,567 |   |
|                                                              |                                                                |    |                                                              |   |   |   |   |   |   |   |   |   |

| (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****June                  30** |   | **Six                  months ended****June                  30** |   |
|-------------------------------------|---------------------------------------------------------------------|--------|-------------------------------------------------------------------|--------|
| *(In                  millions)*    | **2006**                                                            |   | **2005**                                                          |   | **2006** |   | **2005** |   |
|                                |                                                                |   |                                                              |   |   |   |   |   |   |   |   |   |
| **Revenues**                        | $                                                                   | 5,527  |                                                              | $      | 4,929 |   | $ | 11,011 |   | $ | 10,001 |   |
|                                |                                                                |   |                                                              |   |   |   |   |   |   |   |   |   |
| **Segment                  profit** | $                                                                   | 1,057  |                                                              | $      | 872 |   | $ | 2,231 |   | $ | 1,798 |   |
|                                |                                                                |   |                                                              |   |   |   |   |   |   |   |   |   |

|                              | **At**      |    |        |   |         |
|-----------------------------------|-------------|---------|-------------|--------|--------------|
| *(In                  millions)*  | **6/30/06** |    | **6/30/05** |   | **12/31/05** |   |   |   |   |
|                              |        |    |        |   |         |   |   |   |   |   |   |   |
| **Total                  assets** | $           | 206,510 |        | $      | 185,665      |   | $ | 190,546 |   |   |   |   |

|                                      | **Three                  months ended****June                  30** |   | **Six                  months ended****June                  30** |   |
|-------------------------------------------|---------------------------------------------------------------------|--------|-------------------------------------------------------------------|--------|
| *(In                  millions)*          | **2006**                                                            |   | **2005**                                                          |   | **2006** |   | **2005** |   |
|                                      |                                                                |   |                                                              |   |   |   |   |   |   |   |   |   |
| **Revenues                  in GE**       |                                                                |   |                                                              |   |   |   |   |   |   |   |   |   |
| Capital                  Solutions        | $                                                                   | 3,047  |                                                              | $      | 2,856 |   | $ | 5,867 |   | $ | 5,745 |   |
| Real                  Estate              |                                                                | 1,047  |                                                              |   | 744 |   |   | 2,122 |   |   | 1,642 |   |
|                                      |                                                                |   |                                                              |   |   |   |   |   |   |   |   |   |
| **Segment                  profit in GE** |                                                                |   |                                                              |   |   |   |   |   |   |   |   |   |
| Capital                  Solutions        | $                                                                   | 433    |                                                              | $      | 325 |   | $ | 772 |   | $ | 611 |   |
| Real                  Estate              |                                                                | 334    |                                                              |   | 240 |   |   | 775 |   |   | 550 |   |

|                               | **At**      |   |        |   |         |
|------------------------------------|-------------|--------|-------------|--------|--------------|
| *(In                  millions)*   | **6/30/06** |   | **6/30/05** |   | **12/31/05** |   |   |   |   |
|                               |        |   |        |   |         |   |   |   |   |   |   |   |
| **Assets                  in GE**  |        |   |        |   |         |   |   |   |   |   |   |   |
| Capital                  Solutions | $           | 90,710 |        | $      | 85,069       |   | $ | 87,306 |   |   |   |   |
| Real                  Estate       |        | 44,144 |        |   | 35,619       |   |   | 35,323 |   |   |   |   |

----

**GE        Consumer Finance**

|                                | **Three                  months ended****June                  30** |    | **Six                  months ended****June                  30** |   |
|-------------------------------------|---------------------------------------------------------------------|---------|-------------------------------------------------------------------|--------|
| *(In                  millions)*    | **2006**                                                            |    | **2005**                                                          |   | **2006** |   | **2005** |   |
|                                |                                                                |    |                                                              |   |   |   |   |   |   |   |   |   |
| **Revenues**                        | $                                                                   | 5,268   |                                                              | $      | 4,928 |   | $ | 10,358 |   | $ | 9,617 |   |
|                                |                                                                |    |                                                              |   |   |   |   |   |   |   |   |   |
| **Segment                  profit** | $                                                                   | 880     |                                                              | $      | 735 |   | $ | 1,716 |   | $ | 1,470 |   |
|                                |                                                                |    |                                                              |   |   |   |   |   |   |   |   |   |
|                                |                                                                |    |                                                              |   |   |   |   |   |   |   |   |   |
|                                | **At**                                                              |    |                                                              |   |   |
| *(In                  millions)*    | **6/30/06**                                                         |    | **6/30/05**                                                       |   | **12/31/05** |   |   |   |   |
|                                |                                                                |    |                                                              |   |   |   |   |   |   |   |   |   |
| **Total                  assets**   | $                                                                   | 169,416 |                                                              | $      | 149,568 |   | $ | 158,829 |   |   |   |   |

----

**GE        Industrial**

|                                               | **Three                  months ended****June                  30** |   | **Six                  months ended****June                  30** |   |
|----------------------------------------------------|---------------------------------------------------------------------|--------|-------------------------------------------------------------------|--------|
| *(In                  millions)*                   | **2006**                                                            |   | **2005**                                                          |   | **2006** |   | **2005** |   |
|                                               |                                                                |   |                                                              |   |   |   |   |   |   |   |   |   |
| **Revenues**                                       | $                                                                   | 8,788  |                                                              | $      | 8,253 |   | $ | 16,928 |   | $ | 15,921 |   |
| Less                  portion of GE Industrial not |                                                                |   |                                                              |   |   |   |   |   |   |   |   |   |
| included                  in GECS                  |                                                                | (6,991 | )                                                                 |   | (6,601 | ) |   | (13,497 | ) |   | (12,695 | ) |
| Total                  revenues in GECS            | $                                                                   | 1,797  |                                                              | $      | 1,652 |   | $ | 3,431 |   | $ | 3,226 |   |
|                                               |                                                                |   |                                                              |   |   |   |   |   |   |   |   |   |
| **Segment                  profit**                | $                                                                   | 729    |                                                              | $      | 635 |   | $ | 1,329 |   | $ | 1,161 |   |
| Less                  portion of GE Industrial not |                                                                |   |                                                              |   |   |   |   |   |   |   |   |   |
| included                  in GECS                  |                                                                | (669   | )                                                                 |   | (599 | ) |   | (1,253 | ) |   | (1,115 | ) |
| Total                  segment profit in GECS      | $                                                                   | 60     |                                                              | $      | 36 |   | $ | 76 |   | $ | 46 |   |
|                                               |                                                                |   |                                                              |   |   |   |   |   |   |   |   |   |
| **Revenues                  in GE**                |                                                                |   |                                                              |   |   |   |   |   |   |   |   |   |
| Consumer                  & Industrial         | $                                                                   | 3,852  |                                                              | $      | 3,576 |   | $ | 7,386 |   | $ | 6,837 |   |
| Equipment                  Services                |                                                                | 1,797  |                                                              |   | 1,652 |   |   | 3,431 |   |   | 3,226 |   |
| Plastics                                           |                                                                | 1,684  |                                                              |   | 1,640 |   |   | 3,328 |   |   | 3,288 |   |
|                                               |                                                                |   |                                                              |   |   |   |   |   |   |   |   |   |
| **Segment                  profit in GE**          |                                                                |   |                                                              |   |   |   |   |   |   |   |   |   |
| Consumer                  & Industrial         | $                                                                   | 318    |                                                              | $      | 227 |   | $ | 538 |   | $ | 392 |   |
| Equipment                  Services                |                                                                | 60     |                                                              |   | 36 |   |   | 76 |   |   | 46 |   |
| Plastics                                           |                                                                | 183    |                                                              |   | 208 |   |   | 408 |   |   | 448 |   |

----

**GE        Infrastructure**

|                                                   | **Three                  months ended****June                  30** |   | **Six                  months ended****June                  30** |   |
|--------------------------------------------------------|---------------------------------------------------------------------|--------|-------------------------------------------------------------------|--------|
| *(In                  millions)*                       | **2006**                                                            |   | **2005**                                                          |   | **2006** |   | **2005** |   |
|                                                   |                                                                |   |                                                              |   |   |   |   |   |   |   |   |   |
| **Revenues**                                           | $                                                                   | 11,332 |                                                              | $      | 10,221 |   | $ | 21,484 |   | $ | 19,595 |   |
| Less                  portion of GE Infrastructure not |                                                                |   |                                                              |   |   |   |   |   |   |   |   |   |
| included                  in GECS                      |                                                                | (9,947 | )                                                                 |   | (8,964 | ) |   | (18,796 | ) |   | (17,245 | ) |
| Total                  revenues in GECS                | $                                                                   | 1,385  |                                                              | $      | 1,257 |   | $ | 2,688 |   | $ | 2,350 |   |
|                                                   |                                                                |   |                                                              |   |   |   |   |   |   |   |   |   |
| **Segment                  profit**                    | $                                                                   | 2,107  |                                                              | $      | 1,916 |   | $ | 3,810 |   | $ | 3,456 |   |
| Less                  portion of GE Infrastructure not |                                                                |   |                                                              |   |   |   |   |   |   |   |   |   |
| included                  in GECS                      |                                                                | (1,635 | )                                                                 |   | (1,529 | ) |   | (2,986 | ) |   | (2,795 | ) |
| Total                  segment profit in GECS          | $                                                                   | 472    |                                                              | $      | 387 |   | $ | 824 |   | $ | 661 |   |
|                                                   |                                                                |   |                                                              |   |   |   |   |   |   |   |   |   |
| **Revenues                  in GE**                    |                                                                |   |                                                              |   |   |   |   |   |   |   |   |   |
| Aviation                                               | $                                                                   | 3,291  |                                                              | $      | 2,971 |   | $ | 6,332 |   | $ | 5,561 |   |
| Aviation                  Financial Services           |                                                                | 981    |                                                              |   | 819 |   |   | 1,915 |   |   | 1,636 |   |
| Energy                                                 |                                                                | 4,442  |                                                              |   | 3,884 |   |   | 8,277 |   |   | 7,835 |   |
| Energy                  Financial Services             |                                                                | 364    |                                                              |   | 382 |   |   | 665 |   |   | 610 |   |
| Oil                  & Gas                         |                                                                | 1,094  |                                                              |   | 763 |   |   | 1,866 |   |   | 1,404 |   |
| Transportation                                         |                                                                | 1,002  |                                                              |   | 892 |   |   | 2,025 |   |   | 1,648 |   |
|                                                   |                                                                |   |                                                              |   |   |   |   |   |   |   |   |   |
| **Segment                  profit in GE**              |                                                                |   |                                                              |   |   |   |   |   |   |   |   |   |
| Aviation                                               | $                                                                   | 728    |                                                              | $      | 690 |   | $ | 1,373 |   | $ | 1,217 |   |
| Aviation                  Financial Services           |                                                                | 310    |                                                              |   | 185 |   |   | 516 |   |   | 348 |   |
| Energy                                                 |                                                                | 689    |                                                              |   | 625 |   |   | 1,125 |   |   | 1,202 |   |
| Energy                  Financial Services             |                                                                | 146    |                                                              |   | 179 |   |   | 263 |   |   | 273 |   |
| Oil                  & Gas                         |                                                                | 108    |                                                              |   | 75 |   |   | 163 |   |   | 102 |   |
| Transportation                                         |                                                                | 165    |                                                              |   | 101 |   |   | 369 |   |   | 183 |   |

----

**Discontinued        Insurance Operations **

|                                                       | **Three                  months ended****June                  30** |   | **Six                  months ended****June                  30** |   |
|------------------------------------------------------------|---------------------------------------------------------------------|--------|-------------------------------------------------------------------|--------|
| *(In                  millions)*                           | **2006**                                                            |   | **2005**                                                          |   | **2006** |   | **2005** |   |
|                                                       |                                                                |   |                                                              |   |   |   |   |   |   |   |   |   |
| Earnings                  (loss) in GECS from discontinued |                                                                |   |                                                              |   |   |   |   |   |   |   |   |   |
| operations,                  net of taxes                  | $                                                                   | (2     | )                                                                 | $      | 271 |   | $ | 261 |   | $ | 676 |   |

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**B.        Statement of Financial Position**

**Overview        of Financial Position**

| · | During                  the second quarter of 2006, we completed the sale of the property                  and                  casualty insurance and reinsurance businesses and the European                  life and                  health operations of GE Insurance Solutions to Swiss Re. This transaction                  reduced assets and liabilities of discontinued operations by $43.8                  billion                  and $36.0 billion, respectively. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | 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. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | During                  the first six months of 2006, we completed the acquisitions of                  Arden                  Realty, Inc., a fully integrated real estate company at GE Commercial                  Finance; and the private-label credit card portfolio of Hudson’s Bay Co.                  at GE Consumer Finance. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | The                  U.S. dollar was weaker at June 30, 2006, than it was at December                  31, 2005,                  increasing the translated levels of our non-U.S. dollar assets                  and                  liabilities. However, on average, the U.S. dollar in 2006 has been                  stronger than during the comparable 2005 period, decreasing the                  translated                  levels of our non-U.S. dollar operations, as noted in the preceding                  Results of Operations section. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Investment        securities**

**Financing        receivables **

----

|                                   | **Delinquency                  rates at** |    |
|----------------------------------------|-------------------------------------------|---------|
|                                   | **6/30/06**                               | **(a)** | **12/31/05** |   | **6/30/05** |   |
|                                   |                                      |    |   |   |   |   |
| GE                  Commercial Finance | 1.29                                      | %       | 1.31 | % | 1.31 | % |
| GE                  Consumer Finance   | 5.22                                      |    | 5.08 |   | 5.15 |   |
|                                   |                                      |    |   |   |   |   |

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

**C.        Debt Instruments**

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**D.        Other Information**

**New        Accounting Standards**

*Accounting        for Uncertainty in Income Taxes*
*Accounting        for a Change in the Timing of Cash Flows Relating to Income Taxes Generated        by a        Leveraged Lease Transaction*

**Item        4. Controls and Procedures**

**Part        II. Other Information**

**Item        1. Legal Proceedings**

**Item        6. 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.  |
|--------|--------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | 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.                                                                                      |

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**Signatures**

| General                  Electric Capital Services, Inc.(Registrant)   |
|----------------------------------------------------------------------------------|
| July                  24, 2006                                                   |   | /s/                  Philip D. Ameen |   |
| Date                                                                             |   | Philip                  D. AmeenSenior                  Vice President and ControllerDuly                  Authorized Officer and Principal Accounting                  Officer |

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