**UNITED      STATES SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON,      D.C. 20549**

|   |                           |   |
|--------|--------------------------------|--------|
|   | **FORM                10-Q/A** |   |

**Amendment      No. 1 to 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.**

|                                                                                                                              |   | Page   |
|-----------------------------------------------------------------------------------------------------------------------------------|--------|--------|
|                                                                                                                              |   |   |
| **Explanatory                Note**                                                                                               |   | 3      |
|                                                                                                                              |   |   |
| **Part                I - Financial Information**                                                                                 |   |   |
|                                                                                                                              |   |   |
| Item                1. Financial Statements                                                                                       |   |   |
| Condensed                Statement of Current and Retained Earnings                                                               |   | 6      |
| Condensed                Statement of Financial Position                                                                          |   | 7      |
| Condensed                Statement of Cash Flows                                                                                  |   | 8      |
| Notes                to Condensed, Consolidated Financial Statements                (Unaudited)                                   |   | 9      |
| Item                2. Management’s Discussion and Analysis of Financial Condition and Results                of Operations |   | 16     |
| Item                4. Controls and Procedures                                                                                    |   | 28     |
|                                                                                                                              |   |   |
| **Part                II - Other Information**                                                                                    |   |   |
|                                                                                                                              |   |   |
| Item                1. Legal Proceedings                                                                                          |   | 28     |
| Item                6. Exhibits                                                                                                   |   | 29     |
| Signatures                                                                                                                        |   | 30     |
|                                                                                                                              |   |   |

**Forward-Looking      Statements**

----

**Explanatory      Note**

**Overview**

*Accounting      for Derivative Instruments and Hedging Activities*

|                                                | **Effects                of Correction**                        |   |
|-----------------------------------------------------|-----------------------------------------------------------------|--------|
|                                                | **Three                months ended****June                30** |   | **Six                months ended****June                30** |   |
| *(In                millions)*                      | **2006**                                                        |   | **2005** |   | **2006** |   | **2005** |   |
|                                                |                                                            |   |   |   |   |   |   |   |   |   |   |   |
| Increase                (decrease) in earnings from |                                                            |   |   |   |   |   |   |   |   |   |   |   |
| continuing                operations                | $                                                               | 94     |   | $ | (139 | ) | $ | 229 |   | $ | 86 |   |

**Background**

----

**Amendment      to this Form 10-Q**

**Effects      of Restatement**

**Effects      on Statements of Earnings**

|                                                      | **Three                months ended****June                30** |   | **Six                months ended****June                30** |   |
|-----------------------------------------------------------|-----------------------------------------------------------------|--------|---------------------------------------------------------------|--------|
| *(Income                (expense);in millions)*           | **2006**                                                        |   | **2005**                                                      |   | **2006** |   | **2005** |   |
|                                                      |                                                            |   |                                                          |   |   |   |   |   |   |   |   |   |
| Commercial                paper interest rate swap        |                                                            |   |                                                          |   |   |   |   |   |   |   |   |   |
| adjustment                (note 1)(a)                     | $                                                               | 148    |                                                          | $      | (239 | ) | $ | 356 |   | $ | 119 |   |
| Interest                                                  |                                                            | 6      |                                                          |   | 11 |   |   | 19 |   |   | 23 |   |
| Earnings                from continuing operations before |                                                            |   |                                                          |   |   |   |   |   |   |   |   |   |
| income                taxes                               |                                                            | 154    |                                                          |   | (228 | ) |   | 375 |   |   | 142 |   |
| Provision                for income taxes                 |                                                            | (60    | )                                                             |   | 89 |   |   | (146 | ) |   | (56 | ) |
| Earnings                from continuing operations        |                                                            | 94     |                                                          |   | (139 | ) |   | 229 |   |   | 86 |   |
| Net                earnings                               |                                                            | 94     |                                                          |   | (139 | ) |   | 229 |   |   | 86 |   |
| Retained                earnings at beginning of period   |                                                            | (338   | )                                                             |   | (606 | ) |   | (473 | ) |   | (831 | ) |
| Retained                earnings at end of period         |                                                            | (244   | )                                                             |   | (745 | ) |   | (244 | ) |   | (745 | ) |
|                                                      |                                                            |   |                                                          |   |   |   |   |   |   |   |   |   |

| (a) | Included                in total revenues. |   |
|-----|--------------------------------------------|--------|

----

----

**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****(Restated)**                                          |   | **2005****(Restated)**                                        |   | **2006****(Restated)** |   | **2005****(Restated)** |   |
|                                                                   |                                                            |   |                                                          |   |   |   |   |   |   |   |   |   |
| **Revenues**                                                           |                                                            |   |                                                          |   |   |   |   |   |   |   |   |   |
| Revenues                from services (note 3)                         | $                                                               | 14,595 |                                                          | $      | 13,297 |   | $ | 28,721 |   | $ | 26,228 |   |
| Sales                of goods                                          |                                                            | 712    |                                                          |   | 664 |   |   | 1,267 |   |   | 1,338 |   |
| Commercial                paper interest rate swap adjustment (note 1) |                                                            | 148    |                                                          |   | (239 | ) |   | 356 |   |   | 119 |   |
| Total                revenues                                          |                                                            | 15,455 |                                                          |   | 13,722 |   |   | 30,344 |   |   | 27,685 |   |
|                                                                   |                                                            |   |                                                          |   |   |   |   |   |   |   |   |   |
| **Costs                and expenses**                                  |                                                            |   |                                                          |   |   |   |   |   |   |   |   |   |
| Interest                                                               |                                                            | 4,196  |                                                          |   | 3,592 |   |   | 8,290 |   |   | 6,994 |   |
| 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                                |                                                            | 12,484 |                                                          |   | 11,712 |   |   | 24,516 |   |   | 23,237 |   |
|                                                                   |                                                            |   |                                                          |   |   |   |   |   |   |   |   |   |
| **Earnings                from continuing operations before**          |                                                            |   |                                                          |   |   |   |   |   |   |   |   |   |
| **income                taxes**                                        |                                                            | 2,971  |                                                          |   | 2,010 |   |   | 5,828 |   |   | 4,448 |   |
| Provision                for income taxes                              |                                                            | (377   | )                                                             |   | (121 | ) |   | (829 | ) |   | (471 | ) |
|                                                                   |                                                            |   |                                                          |   |   |   |   |   |   |   |   |   |
| **Earnings                from continuing operations**                 |                                                            | 2,594  |                                                          |   | 1,889 |   |   | 4,999 |   |   | 3,977 |   |
| Earnings                (loss) from discontinued operations, net of    |                                                            |   |                                                          |   |   |   |   |   |   |   |   |   |
| taxes                (note 2)                                          |                                                            | (2     | )                                                             |   | 271 |   |   | 261 |   |   | 676 |   |
|                                                                   |                                                            |   |                                                          |   |   |   |   |   |   |   |   |   |
| **Net                earnings**                                        |                                                            | 2,592  |                                                          |   | 2,160 |   |   | 5,260 |   |   | 4,653 |   |
| Dividends                                                              |                                                            | (4,186 | )                                                             |   | (1,615 | ) |   | (7,730 | ) |   | (1,839 | ) |
| Retained                earnings at beginning of period                |                                                            | 34,030 |                                                          |   | 37,414 |   |   | 34,906 |   |   | 35,145 |   |
| Retained                earnings at end of period                      | $                                                               | 32,436 |                                                          | $      | 37,959 |   | $ | 32,436 |   | $ | 37,959 |   |
|                                                                   |                                                            |   |                                                          |   |   |   |   |   |   |   |   |   |

----

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

**Condensed      Statement of Financial Position**

| *(In                millions)*                                                                           | **June                30, 2006****(Restated)** |    | **December                31, 2005****(Restated)** |
|----------------------------------------------------------------------------------------------------------|------------------------------------------------|---------|----------------------------------------------------|
|                                                                                                     | **(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                                                                              |                                           | 55,702  |                                               |   | 49,440 |   |
| Assets                of discontinued operations (note 2)                                                |                                           | 15,090  |                                               |   | 61,066 |   |
| Total                assets                                                                              | $                                              | 528,326 |                                               | $ | 540,584 |   |
|                                                                                                     |                                           |    |                                               |   |   |   |
| **Liabilities                and equity**                                                                |                                           |    |                                               |   |   |   |
| Borrowings                (note 6)                                                                       | $                                              | 385,360 |                                               | $ | 362,069 |   |
| Accounts                payable                                                                          |                                           | 12,848  |                                               |   | 13,043 |   |
| Investment                contracts, insurance liabilities and insurance annuity                benefits |                                           | 34,872  |                                               |   | 33,387 |   |
| Other                liabilities                                                                         |                                           | 17,702  |                                               |   | 16,787 |   |
| Deferred                income taxes                                                                     |                                           | 11,682  |                                               |   | 12,475 |   |
| Liabilities                of discontinued operations (note 2)                                           |                                           | 14,959  |                                               |   | 49,763 |   |
| Total                liabilities                                                                         |                                           | 477,423 |                                               |   | 487,524 |   |
|                                                                                                     |                                           |    |                                               |   |   |   |
| 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                                                                          |                                           | 23      |                                               |   | (343 | ) |
| Minimum                pension liabilities                                                               |                                           | (192    | )                                                  |   | (179 | ) |
| Additional                paid-in capital                                                                |                                           | 12,514  |                                               |   | 12,376 |   |
| Retained                earnings                                                                         |                                           | 32,436  |                                               |   | 34,906 |   |
| Total                shareowner’s equity                                                           |                                           | 48,608  |                                               |   | 50,812 |   |
| Total                liabilities and equity                                                              | $                                              | 528,326 |                                               | $ | 540,584 |   |
|                                                                                                     |                                           |    |                                               |   |   |   |

----

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

**Condensed      Statement of Cash Flows**

**(Unaudited)**

| *(In                millions)*                                                                                 | **Six                months ended****June                30** |     |
|----------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------|----------|
|                                                                                                           | **2006****(Restated)**                                        | **(a)**  | **2005****(Restated)** | **(a)** |
| **Cash                flows - operating activities**                                                           |                                                          |     |   |   |   |   |
| Net                earnings                                                                                    | $                                                             | 5,260    |   | $ | 4,653 |   |
| 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                                                                    |                                                          | (373     | ) |   | (71 | ) |
| Provision                for losses on financing receivables                                                   |                                                          | 1,718    |   |   | 1,860 |   |
| All                other operating activities                                                                  |                                                          | (640     | ) |   | (961 | ) |
| 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 |   |
|                                                                                                           |                                                          |     |   |   |   |   |

| The                notes to condensed, consolidated financial statements are an integral                part                of this statement.  |
|------------------------------------------------------------------------------------------------------------------------------------------------------|
| (a)                                                                                                                                                  | Certain                individual line items within cash from operating activities have                been                restated. |

----

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

**2007      Restatement**

*Accounting      for Derivative Instruments and Hedging Activities*

**Background**

----

|                                               | **Three                months ended****June                30** |   | **Six                months ended****June                30** |   |
|----------------------------------------------------|-----------------------------------------------------------------|--------|---------------------------------------------------------------|--------|
|                                               | **2006**                                                        |   | **2005**                                                      |   | **2006** |   | **2005** |   |
| *(In                millions)(unaudited)*          | **As****previously****reported**                                |   | **As****restated**                                            |   | **As****previously****reported** |   | **As****restated** |   | **As****previously****reported** |   | **As****restated** |   | **As****previously****reported** |   | **As****restated** |   |
| **Statement                of Earnings**           |                                                            |   |                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                               |                                                            |   |                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial                paper interest rate      |                                                            |   |                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| swap                adjustment(a)                  | $                                                               | -      |                                                          | $      | 148 |   | $ | - |   | $ | (239 | ) | $ | - |   | $ | 356 |   | $ | - |   | $ | 119 |   |
| Interest                                           |                                                            | 4,202  |                                                          |   | 4,196 |   |   | 3,603 |   |   | 3,592 |   |   | 8,309 |   |   | 8,290 |   |   | 7,017 |   |   | 6,994 |   |
| Earnings                from continuing operations |                                                            |   |                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| before                income taxes                 |                                                            | 2,817  |                                                          |   | 2,971 |   |   | 2,238 |   |   | 2,010 |   |   | 5,453 |   |   | 5,828 |   |   | 4,306 |   |   | 4,448 |   |
| Provision                for income taxes          |                                                            | (317   | )                                                             |   | (377 | ) |   | (210 | ) |   | (121 | ) |   | (683 | ) |   | (829 | ) |   | (415 | ) |   | (471 | ) |
| Earnings                from continuing operations |                                                            | 2,500  |                                                          |   | 2,594 |   |   | 2,028 |   |   | 1,889 |   |   | 4,770 |   |   | 4,999 |   |   | 3,891 |   |   | 3,977 |   |
| Net                earnings                        |                                                            | 2,498  |                                                          |   | 2,592 |   |   | 2,299 |   |   | 2,160 |   |   | 5,031 |   |   | 5,260 |   |   | 4,567 |   |   | 4,653 |   |
| Retained                earnings at beginning      |                                                            |   |                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| of                period                           |                                                            | 34,368 |                                                          |   | 34,030 |   |   | 38,020 |   |   | 37,414 |   |   | 35,379 |   |   | 34,906 |   |   | 35,976 |   |   | 35,145 |   |
| Retained                earnings at end of period  |                                                            | 32,680 |                                                          |   | 32,436 |   |   | 38,704 |   |   | 37,959 |   |   | 32,680 |   |   | 32,436 |   |   | 38,704 |   |   | 37,959 |   |
|                                               |                                                            |   |                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

| (a) | Included                in total revenues. |   |
|-----|--------------------------------------------|--------|

----

|                                               | **At**                           |    |
|----------------------------------------------------|----------------------------------|---------|
|                                               | **6/30/06**                      |    | **12/31/05** |   |
| *(In                millions) (unaudited)*         | **As****previously****reported** |    | **As****restated** |   | **As****previously****reported** |   | **As****restated** |   |
|                                               |                             |    |   |   |   |   |   |   |   |   |   |   |
| **Statement                of Financial Position** |                             |    |   |   |   |   |   |   |   |   |   |   |
|                                               |                             |    |   |   |   |   |   |   |   |   |   |   |
| Other                assets                        | $                                | 55,680  |   | $ | 55,702 |   | $ | 49,461 |   | $ | 49,440 |   |
| Total                assets                        |                             | 528,304 |   |   | 528,326 |   |   | 540,605 |   |   | 540,584 |   |
|                                               |                             |    |   |   |   |   |   |   |   |   |   |   |
| Accounts                payable                    |                             | 12,717  |   |   | 12,848 |   |   | 13,043 |   |   | 13,043 |   |
| Other                liabilities                   |                             | 17,679  |   |   | 17,702 |   |   | 16,787 |   |   | 16,787 |   |
| Deferred                income taxes               |                             | 11,833  |   |   | 11,682 |   |   | 12,493 |   |   | 12,475 |   |
| Total                liabilities                   |                             | 477,420 |   |   | 477,423 |   |   | 487,542 |   |   | 487,524 |   |
|                                               |                             |    |   |   |   |   |   |   |   |   |   |   |
| Cash                flow hedges                    |                             | (240    | ) |   | 23 |   |   | (813 | ) |   | (343 | ) |
| Retained                earnings                   |                             | 32,680  |   |   | 32,436 |   |   | 35,379 |   |   | 34,906 |   |
| Total                shareowner’s equity     |                             | 48,589  |   |   | 48,608 |   |   | 50,815 |   |   | 50,812 |   |
| Total                liabilities and equity        |                             | 528,304 |   |   | 528,326 |   |   | 540,605 |   |   | 540,584 |   |

**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****(Restated)**                                          |   | **2005****(Restated)**                                        |   | **2006****(Restated)** |   | **2005****(Restated)** |   |
|                                                  |                                                            |   |                                                          |   |   |   |   |   |   |   |   |   |
| Net                earnings                           | $                                                               | 2,592  |                                                          | $      | 2,160 |   | $ | 5,260 |   | $ | 4,653 |   |
| 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                 |                                                            | 155    |                                                          |   | (4 | ) |   | 366 |   |   | 148 |   |
| Minimum                pension liabilities - net      |                                                            | (3     | )                                                             |   | (5 | ) |   | (13 | ) |   | (11 | ) |
| Total                                                 | $                                                               | 3,504  |                                                          | $      | 940 |   | $ | 5,388 |   | $ | 3,114 |   |

----

|                                    | **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 **

**2007      Restatement**

*Accounting      for Derivative *

----

*Instruments      and Hedging Activities*

|                                                        | **Increase                (decrease) in earnings****from                continuing operations** |   |
|-------------------------------------------------------------|-------------------------------------------------------------------------------------------------|--------|
|                                                        | **Three                months ended****June                30**                                 |   | **Six                months ended****June                30** |   |
| *(In                millions)*                              | **2006**                                                                                        |   | **2005** |   | **2006** |   | **2005** |   |
|                                                        |                                                                                            |   |   |   |   |   |   |   |   |   |   |   |
| Total                adjustment                             | $                                                                                               | 94     |   | $ | (139 | ) | $ | 229 |   | $ | 86 |   |
|                                                        |                                                                                            |   |   |   |   |   |   |   |   |   |   |   |
| Previously                reported earnings from continuing |                                                                                            |   |   |   |   |   |   |   |   |   |   |   |
| operations                                                  | $                                                                                               | 2,500  |   | $ | 2,028 |   | $ | 4,770 |   | $ | 3,891 |   |
|                                                        |                                                                                            |   |   |   |   |   |   |   |   |   |   |   |
| Percent                variation from previously reported   |                                                                                            |   |   |   |   |   |   |   |   |   |   |   |
| earnings                from continuing operations          |                                                                                            | 3.8    | % |   | (6.9 | )% |   | 4.8 | % |   | 2.2 | % |

**A.      Results of Operations**

----

**Overview**

----

**Segment      Operations**

----

**Summary      of Operating Segments**

|                                                                 | **Three                months ended****June                30** |    | **Six                months ended****June                30** |   |
|----------------------------------------------------------------------|-----------------------------------------------------------------|---------|---------------------------------------------------------------|--------|
| *(In                millions)*                                       | **2006****(Restated)**                                          |    | **2005****(Restated)**                                        |   | **2006****(Restated)** |   | **2005****(Restated)** |   |
|                                                                 |                                                            |    |                                                          |   |   |   |   |   |   |   |   |   |
|                                                                 |                                                            |    |                                                          |   |   |   |   |   |   |   |   |   |
| **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, as restated(a) |                                                            | 1,478   |                                                          |   | 956 |   |   | 2,856 |   |   | 2,491 |   |
| Total                revenues                                        |                                                            | 32,393  |                                                          |   | 29,287 |   |   | 62,637 |   |   | 57,625 |   |
| Less                portion of GE revenues not included in GECS      |                                                            | (16,938 | )                                                             |   | (15,565 | ) |   | (32,293 | ) |   | (29,940 | ) |
| Total                revenues in GECS                                | $                                                               | 15,455  |                                                          | $      | 13,722 |   | $ | 30,344 |   | $ | 27,685 |   |
|                                                                 |                                                            |    |                                                          |   |   |   |   |   |   |   |   |   |
| **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, as restated    |                                                            | 125     |                                                          |   | (141 | ) |   | 152 |   |   | 2 |   |
| Less                portion of GE segment profit not included        |                                                            |    |                                                          |   |   |   |   |   |   |   |   |   |
| in                GECS                                               |                                                            | (2,304  | )                                                             |   | (2,128 | ) |   | (4,239 | ) |   | (3,910 | ) |
| Earnings                in GECS from continuing operations           |                                                            | 2,594   |                                                          |   | 1,889 |   |   | 4,999 |   |   | 3,977 |   |
| Earnings                (loss) in GECS from discontinued             |                                                            |    |                                                          |   |   |   |   |   |   |   |   |   |
| operations,                net of taxes                              |                                                            | (2      | )                                                             |   | 271 |   |   | 261 |   |   | 676 |   |
| Total                net earnings in GECS                            | $                                                               | 2,592   |                                                          | $      | 2,160 |   | $ | 5,260 |   | $ | 4,653 |   |
|                                                                 |                                                            |    |                                                          |   |   |   |   |   |   |   |   |   |

| (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 |   |

----

**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**

----

**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.                                                                                     |
|   | *                Filed electronically herewith. |

----

**Signatures**

| General                Electric Capital Services, Inc.(Registrant)   |
|--------------------------------------------------------------------------------|
| January                19, 2007                                                |   | /s/                Philip D. Ameen |   |
| Date                                                                           |   | Philip                D. AmeenSenior                Vice President and ControllerDuly                Authorized Officer and Principal Accounting                Officer |

----