----

----

**UNITED      STATES SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON,      D.C. 20549**

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

| (Mark                  One) |   |
|-----------------------------|--------|

|                                                                                 |
|--------------------------------------------------------------------------------------|
| [X]                QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF               |
| THE                SECURITIES EXCHANGE ACT OF 1934                                   |
|                                                                                 |
| For                the quarterly period ended September                30, 2006      |
|                                                                                 |
| OR                                                                                   |
|                                                                                 |
| [                 ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF        |
| THE                SECURITIES EXCHANGE ACT OF 1934                                   |
|                                                                                 |
| For                the transition period from ____ to ____                           |
|                                                                                 |
| Commission                file number 0-14804                                        |
|                                                                                 |
| **GENERAL                ELECTRIC CAPITAL SERVICES, INC.**                           |
| (Exact                name of registrant as specified in its                charter) |

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

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

**þ**
** **
**¨**

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

**¨**
**þ**

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

----

**General      Electric Capital Services, Inc.**

| **Part                I - Financial Information**                                                                                 |   | Page   |
|-----------------------------------------------------------------------------------------------------------------------------------|--------|--------|
|                                                                                                                              |   |   |
| Item                1. Financial Statements                                                                                       |   |   |
| Condensed                Statement of Current and Retained Earnings                                                               |   | 3      |
| Condensed                Statement of Financial Position                                                                          |   | 4      |
| Condensed                Statement of Cash Flows                                                                                  |   | 5      |
| Notes                to Condensed, Consolidated Financial Statements                (Unaudited)                                   |   | 6      |
| Item                2. Management’s Discussion and Analysis of Financial Condition and Results                of Operations |   | 12     |
| Item                4. Controls and Procedures                                                                                    |   | 22     |
|                                                                                                                              |   |   |
| **Part                II - Other Information**                                                                                    |   |   |
|                                                                                                                              |   |   |
| Item                1. Legal Proceedings                                                                                          |   | 22     |
| Item                6. Exhibits                                                                                                   |   | 23     |
| Signatures                                                                                                                        |   | 24     |
|                                                                                                                              |   |   |

**Forward-Looking      Statements**

----

**Part      I. Financial Information**

**Item      1. Financial Statements**

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

**Condensed      Statement of Current and Retained Earnings**

**(Unaudited)**

|                                                                | **Three                months ended****September                30** |   | **Nine                months ended****September                30** |   |
|---------------------------------------------------------------------|----------------------------------------------------------------------|--------|---------------------------------------------------------------------|--------|
| *(In                millions)*                                      | **2006**                                                             |   | **2005**                                                            |   | **2006** |   | **2005** |   |
|                                                                |                                                                 |   |                                                                |   |   |   |   |   |   |   |   |   |
| **Revenues**                                                        |                                                                 |   |                                                                |   |   |   |   |   |   |   |   |   |
| Revenues                from services (note 3)                      | $                                                                    | 15,756 |                                                                | $      | 14,323 |   | $ | 44,477 |   | $ | 40,551 |   |
| Sales                of goods                                       |                                                                 | 519    |                                                                |   | 543 |   |   | 1,786 |   |   | 1,881 |   |
| Total                revenues                                       |                                                                 | 16,275 |                                                                |   | 14,866 |   |   | 46,263 |   |   | 42,432 |   |
|                                                                |                                                                 |   |                                                                |   |   |   |   |   |   |   |   |   |
| **Costs                and expenses**                               |                                                                 |   |                                                                |   |   |   |   |   |   |   |   |   |
| Interest                                                            |                                                                 | 4,802  |                                                                |   | 3,508 |   |   | 13,111 |   |   | 10,525 |   |
| Operating                and administrative                         |                                                                 | 4,404  |                                                                |   | 4,129 |   |   | 12,902 |   |   | 12,421 |   |
| Cost                of goods sold                                   |                                                                 | 480    |                                                                |   | 505 |   |   | 1,652 |   |   | 1,768 |   |
| Investment                contracts, insurance losses and insurance |                                                                 |   |                                                                |   |   |   |   |   |   |   |   |   |
| annuity                benefits                                     |                                                                 | 867    |                                                                |   | 926 |   |   | 2,503 |   |   | 2,642 |   |
| Provision                for losses on financing receivables        |                                                                 | 965    |                                                                |   | 1,095 |   |   | 2,683 |   |   | 2,955 |   |
| Depreciation                and amortization                        |                                                                 | 1,659  |                                                                |   | 1,575 |   |   | 4,737 |   |   | 4,616 |   |
| Minority                interest in net earnings of consolidated    |                                                                 |   |                                                                |   |   |   |   |   |   |   |   |   |
| affiliates                                                          |                                                                 | 57     |                                                                |   | 84 |   |   | 181 |   |   | 155 |   |
| Total                costs and expenses                             |                                                                 | 13,234 |                                                                |   | 11,822 |   |   | 37,769 |   |   | 35,082 |   |
|                                                                |                                                                 |   |                                                                |   |   |   |   |   |   |   |   |   |
| **Earnings                from continuing operations before**       |                                                                 |   |                                                                |   |   |   |   |   |   |   |   |   |
| **income                taxes**                                     |                                                                 | 3,041  |                                                                |   | 3,044 |   |   | 8,494 |   |   | 7,350 |   |
| Provision                for income taxes                           |                                                                 | (337   | )                                                                   |   | (444 | ) |   | (1,020 | ) |   | (859 | ) |
|                                                                |                                                                 |   |                                                                |   |   |   |   |   |   |   |   |   |
| **Earnings                from continuing operations**              |                                                                 | 2,704  |                                                                |   | 2,600 |   |   | 7,474 |   |   | 6,491 |   |
| Earnings                (loss) from discontinued operations, net of |                                                                 |   |                                                                |   |   |   |   |   |   |   |   |   |
| taxes                (note 2)                                       |                                                                 | (95    | )                                                                   |   | 85 |   |   | 166 |   |   | 761 |   |
|                                                                |                                                                 |   |                                                                |   |   |   |   |   |   |   |   |   |
| **Net                earnings**                                     |                                                                 | 2,609  |                                                                |   | 2,685 |   |   | 7,640 |   |   | 7,252 |   |
| Dividends                                                           |                                                                 | (1,082 | )                                                                   |   | (3,673 | ) |   | (8,812 | ) |   | (5,512 | ) |
| Retained                earnings at beginning of period             |                                                                 | 32,680 |                                                                |   | 38,704 |   |   | 35,379 |   |   | 35,976 |   |
| Retained                earnings at end of period                   | $                                                                    | 34,207 |                                                                | $      | 37,716 |   | $ | 34,207 |   | $ | 37,716 |   |
|                                                                |                                                                 |   |                                                                |   |   |   |   |   |   |   |   |   |

----

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

**Condensed      Statement of Financial Position**

| *(In                millions)*                                                                           | **September                30, 2006** |    | **December                31, 2005** |
|----------------------------------------------------------------------------------------------------------|---------------------------------------|---------|--------------------------------------|
|                                                                                                     | **(Unaudited)**                       |    |                                 |
| **Assets**                                                                                               |                                  |    |                                 |   |   |   |
| Cash                and equivalents                                                                      | $                                     | 12,144  |                                 | $ | 7,130 |   |
| Investment                securities                                                                     |                                  | 45,208  |                                 |   | 41,710 |   |
| Inventories                                                                                              |                                  | 174     |                                 |   | 159 |   |
| Financing                receivables - net (note 4)                                                      |                                  | 310,258 |                                 |   | 287,639 |   |
| Other                receivables                                                                         |                                  | 20,741  |                                 |   | 18,625 |   |
| Buildings                and equipment, less accumulated amortization of $22,571                         |                                  |    |                                 |   |   |   |
| and                $21,327                                                                               |                                  | 56,412  |                                 |   | 51,024 |   |
| Intangible                assets - net (note 5)                                                          |                                  | 25,339  |                                 |   | 23,791 |   |
| Other                assets                                                                              |                                  | 60,426  |                                 |   | 49,461 |   |
| Assets                of discontinued operations (note 2)                                                |                                  | 15,540  |                                 |   | 61,066 |   |
| Total                assets                                                                              | $                                     | 546,242 |                                 | $ | 540,605 |   |
|                                                                                                     |                                  |    |                                 |   |   |   |
| **Liabilities                and equity**                                                                |                                  |    |                                 |   |   |   |
| Borrowings                (note 6)                                                                       | $                                     | 400,196 |                                 | $ | 362,069 |   |
| Accounts                payable                                                                          |                                  | 12,069  |                                 |   | 13,043 |   |
| Investment                contracts, insurance liabilities and insurance annuity                benefits |                                  | 34,894  |                                 |   | 33,387 |   |
| Other                liabilities                                                                         |                                  | 18,142  |                                 |   | 16,787 |   |
| Deferred                income taxes                                                                     |                                  | 12,301  |                                 |   | 12,493 |   |
| Liabilities                of discontinued operations (note 2)                                           |                                  | 15,289  |                                 |   | 49,763 |   |
| Total                liabilities                                                                         |                                  | 492,891 |                                 |   | 487,542 |   |
|                                                                                                     |                                  |    |                                 |   |   |   |
| Minority                interest in equity of consolidated affiliates                                    |                                  | 2,301   |                                 |   | 2,248 |   |
|                                                                                                     |                                  |    |                                 |   |   |   |
| Capital                stock                                                                             |                                  | 11      |                                 |   | 11 |   |
| Accumulated                gains (losses) - net                                                          |                                  |    |                                 |   |   |   |
| Investment                securities                                                                     |                                  | 1,188   |                                 |   | 1,754 |   |
| Currency                translation adjustments                                                          |                                  | 3,774   |                                 |   | 2,287 |   |
| Cash                flow hedges                                                                          |                                  | (465    | )                                    |   | (813 | ) |
| Minimum                pension liabilities                                                               |                                  | (193    | )                                    |   | (179 | ) |
| Additional                paid-in capital                                                                |                                  | 12,528  |                                 |   | 12,376 |   |
| Retained                earnings                                                                         |                                  | 34,207  |                                 |   | 35,379 |   |
| Total                shareowner’s equity                                                           |                                  | 51,050  |                                 |   | 50,815 |   |
| Total                liabilities and equity                                                              | $                                     | 546,242 |                                 | $ | 540,605 |   |
|                                                                                                     |                                  |    |                                 |   |   |   |

----

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

**Condensed      Statement of Cash Flows**

**(Unaudited)**

| *(In                millions)*                                                                                 | **Nine                months ended****September                30** |     |
|----------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------|----------|
|                                                                                                           | **2006**                                                            |     | **2005** |   |
| **Cash                flows - operating activities**                                                           |                                                                |     |   |   |   |   |
| Net                earnings                                                                                    | $                                                                   | 7,640    |   | $ | 7,252 |   |
| Earnings                from discontinued operations                                                           |                                                                | (166     | ) |   | (761 | ) |
| Adjustments                to reconcile net earnings to cash provided from operating                activities |                                                                |     |   |   |   |   |
| Depreciation                and amortization                                                                   |                                                                | 4,737    |   |   | 4,616 |   |
| Increase                (decrease) in accounts payable                                                         |                                                                | (1,022   | ) |   | 468 |   |
| Provision                for losses on financing receivables                                                   |                                                                | 2,683    |   |   | 2,955 |   |
| All                other operating activities                                                                  |                                                                | 1,241    |   |   | 2,470 |   |
| Cash                from operating activities - continuing operations                                          |                                                                | 15,113   |   |   | 17,000 |   |
| Cash                from (used for) operating activities - discontinued                operations              |                                                                | (64      | ) |   | 3,888 |   |
| **Cash                from operating activities**                                                              |                                                                | 15,049   |   |   | 20,888 |   |
|                                                                                                           |                                                                |     |   |   |   |   |
| **Cash                flows - investing activities**                                                           |                                                                |     |   |   |   |   |
| Additions                to buildings and equipment                                                            |                                                                | (8,595   | ) |   | (8,050 | ) |
| Dispositions                of buildings and equipment                                                         |                                                                | 4,429    |   |   | 4,433 |   |
| Increase                in loans to customers                                                                  |                                                                | (238,253 | ) |   | (213,147 | ) |
| Principal                collections from customers - loans                                                    |                                                                | 215,389  |   |   | 206,827 |   |
| Investment                in financing leases                                                                  |                                                                | (18,819  | ) |   | (16,913 | ) |
| Principal                collections from customers - financing leases                                         |                                                                | 16,762   |   |   | 18,361 |   |
| Net                change in credit card receivables                                                           |                                                                | 742      |   |   | (641 | ) |
| Payments                for principal businesses purchased                                                     |                                                                | (6,898   | ) |   | (6,743 | ) |
| Proceeds                from sales of discontinued operations                                                  |                                                                | 8,112    |   |   | 6,690 |   |
| All                other investing activities                                                                  |                                                                | (3,483   | ) |   | (2,937 | ) |
| Cash                used for investing activities - continuing operations                                      |                                                                | (30,614  | ) |   | (12,120 | ) |
| Cash                used for investing activities - discontinued operations                                    |                                                                | (2,469   | ) |   | (5,250 | ) |
| **Cash                used for investing activities**                                                          |                                                                | (33,083  | ) |   | (17,370 | ) |
|                                                                                                           |                                                                |     |   |   |   |   |
| **Cash                flows - financing activities**                                                           |                                                                |     |   |   |   |   |
| Net                decrease in borrowings (maturities of 90 days or less)                                      |                                                                | (1,089   | ) |   | (7,680 | ) |
| Newly                issued debt:                                                                              |                                                                |     |   |   |   |   |
| Short-term                (91 to 365 days)                                                                     |                                                                | 605      |   |   | 1,697 |   |
| Long-term                (longer than one year)                                                                |                                                                | 59,140   |   |   | 46,290 |   |
| Non-recourse,                leveraged lease                                                                   |                                                                | 920      |   |   | 172 |   |
| Repayments                and other debt reductions:                                                           |                                                                |     |   |   |   |   |
| Short-term                (91 to 365 days)                                                                     |                                                                | (24,859  | ) |   | (29,850 | ) |
| Long-term                (longer than one year)                                                                |                                                                | (4,187   | ) |   | (9,515 | ) |
| Non-recourse,                leveraged lease                                                                   |                                                                | (597     | ) |   | (682 | ) |
| Dividends                paid to shareowner                                                                    |                                                                | (8,671   | ) |   | (5,512 | ) |
| All                other financing activities                                                                  |                                                                | (747     | ) |   | (1,401 | ) |
| Cash                from (used for) financing activities - continuing                operations                |                                                                | 20,515   |   |   | (6,481 | ) |
| Cash                from (used for) financing activities - discontinued                operations              |                                                                | (257     | ) |   | 249 |   |
| **Cash                from (used for) financing activities**                                                   |                                                                | 20,258   |   |   | (6,232 | ) |
|                                                                                                           |                                                                |     |   |   |   |   |
| **Increase                (decrease) in cash and equivalents**                                                 |                                                                | 2,224    |   |   | (2,714 | ) |
| Cash                and equivalents at beginning of year                                                       |                                                                | 10,106   |   |   | 12,367 |   |
| Cash                and equivalents at September 30                                                            |                                                                | 12,330   |   |   | 9,653 |   |
| Less                cash and equivalents of discontinued operations at September                30             |                                                                | 186      |   |   | 2,154 |   |
| **Cash                and equivalents of continuing operations at September                30**                | $                                                                   | 12,144   |   | $ | 7,499 |   |
|                                                                                                           |                                                                |     |   |   |   |   |

----

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

**Completed      sale of GE Insurance Solutions**

**Completed      sale of Genworth**

----

**Planned      sale of GE Life**

**Summarized      financial information for discontinued operations**

|                                                               | **Three                months ended****September                30** |   | **Nine                months ended****September                30** |   |
|--------------------------------------------------------------------|----------------------------------------------------------------------|--------|---------------------------------------------------------------------|--------|
| *(In                millions)*                                     | **2006**                                                             |   | **2005**                                                            |   | **2006** |   | **2005** |   |
|                                                               |                                                                 |   |                                                                |   |   |   |   |   |   |   |   |   |
| **Operations**                                                     |                                                                 |   |                                                                |   |   |   |   |   |   |   |   |   |
| Revenues                from services                              | $                                                                    | 489    |                                                                | $      | 5,137 |   | $ | 4,171 |   | $ | 15,367 |   |
|                                                               |                                                                 |   |                                                                |   |   |   |   |   |   |   |   |   |
| Earnings                from discontinued operations before        |                                                                 |   |                                                                |   |   |   |   |   |   |   |   |   |
| minority                interest and income taxes                  | $                                                                    | 9      |                                                                | $      | 47 |   | $ | 391 |   | $ | 1,381 |   |
| Minority                interest                                   |                                                                 | -      |                                                                |   | 150 |   |   | - |   |   | 394 |   |
| Earnings                (loss) from discontinued operations before |                                                                 |   |                                                                |   |   |   |   |   |   |   |   |   |
| income                taxes                                        |                                                                 | 9      |                                                                |   | (103 | ) |   | 391 |   |   | 987 |   |
| Income                tax expense                                  |                                                                 | (4     | )                                                                   |   | (66 | ) |   | (86 | ) |   | (566 | ) |
| Earnings                (loss) from discontinued operations before |                                                                 |   |                                                                |   |   |   |   |   |   |   |   |   |
| disposal,                net of taxes                              | $                                                                    | 5      |                                                                | $      | (169 | ) | $ | 305 |   | $ | 421 |   |
|                                                               |                                                                 |   |                                                                |   |   |   |   |   |   |   |   |   |
| **Disposal**                                                       |                                                                 |   |                                                                |   |   |   |   |   |   |   |   |   |
| Gain                (loss) on disposal before income taxes         | $                                                                    | (163   | )                                                                   | $      | 420 |   | $ | (152 | ) | $ | 576 |   |
| Income                tax benefit (expense)                        |                                                                 | 63     |                                                                |   | (166 | ) |   | 13 |   |   | (236 | ) |
| Gain                (loss) on disposal, net of taxes               | $                                                                    | (100   | )                                                                   | $      | 254 |   | $ | (139 | ) | $ | 340 |   |
|                                                               |                                                                 |   |                                                                |   |   |   |   |   |   |   |   |   |
| Earnings                (loss) from discontinued operations,       |                                                                 |   |                                                                |   |   |   |   |   |   |   |   |   |
| net                of taxes                                        | $                                                                    | (95    | )                                                                   | $      | 85 |   | $ | 166 |   | $ | 761 |   |

|                                             | **At**      |   |
|--------------------------------------------------|-------------|--------|
| *(In                millions)*                   | **9/30/06** |   | **12/31/05** |   |
|                                             |        |   |   |   |   |   |
| **Assets**                                       |        |   |   |   |   |   |
| Cash                and equivalents              | $           | 186    |   | $ | 2,976 |   |
| Investment                securities             |        | 12,107 |   |   | 37,633 |   |
| Other                receivables                 |        | 467    |   |   | 13,915 |   |
| Other                                            |        | 2,780  |   |   | 6,542 |   |
| Assets                of discontinued operations | $           | 15,540 |   | $ | 61,066 |   |

----

|                                                                                                     | **At**      |   |
|----------------------------------------------------------------------------------------------------------|-------------|--------|
| *(In                millions)*                                                                           | **9/30/06** |   | **12/31/05** |   |
|                                                                                                     |        |   |   |   |   |   |
| **Liabilities                and equity**                                                                |        |   |   |   |   |   |
| Investment                contracts, insurance liabilities and insurance annuity                benefits | $           | 13,403 |   | $ | 43,378 |   |
| Other                                                                                                    |        | 1,886  |   |   | 6,385 |   |
| Liabilities                of discontinued operations                                                    | $           | 15,289 |   | $ | 49,763 |   |
|                                                                                                     |        |   |   |   |   |   |
| Total                accumulated nonowner changes other than earnings                                    | $           | 194    |   | $ | 652 |   |

|                                                   | **Three                months ended****September                30** |   | **Nine                months ended****September                30** |   |
|--------------------------------------------------------|----------------------------------------------------------------------|--------|---------------------------------------------------------------------|--------|
| *(In                millions)*                         | **2006**                                                             |   | **2005**                                                            |   | **2006** |   | **2005** |   |
|                                                   |                                                                 |   |                                                                |   |   |   |   |   |   |   |   |   |
| Interest                on loans                       | $                                                                    | 5,586  |                                                                | $      | 4,843 |   | $ | 16,555 |   | $ | 14,944 |   |
| Operating                lease rentals                 |                                                                 | 3,410  |                                                                |   | 3,006 |   |   | 9,477 |   |   | 8,562 |   |
| Fees                                                   |                                                                 | 1,002  |                                                                |   | 1,126 |   |   | 3,018 |   |   | 2,944 |   |
| Financing                leases                        |                                                                 | 1,176  |                                                                |   | 962 |   |   | 3,203 |   |   | 3,030 |   |
| Investment                income                       |                                                                 | 687    |                                                                |   | 895 |   |   | 1,913 |   |   | 2,137 |   |
| Premiums                earned by insurance activities |                                                                 | 536    |                                                                |   | 563 |   |   | 1,512 |   |   | 1,686 |   |
| Other                income                            |                                                                 | 3,359  |                                                                |   | 2,928 |   |   | 8,799 |   |   | 7,248 |   |
| Total                                                  | $                                                                    | 15,756 |                                                                | $      | 14,323 |   | $ | 44,477 |   | $ | 40,551 |   |

|                                                                  | **At**      |    |
|-----------------------------------------------------------------------|-------------|---------|
| *(In                millions)*                                        | **9/30/06** |    | **12/31/05** |   |
|                                                                  |        |    |   |   |   |   |
| Loans,                net of deferred income                          | $           | 246,494 |   | $ | 227,923 |   |
| Investment                in financing leases, net of deferred income |        | 68,278  |   |   | 64,309 |   |
|                                                                  |        | 314,772 |   |   | 292,232 |   |
| Less                allowance for losses                              |        | (4,514  | ) |   | (4,593 | ) |
| Financing                receivables - net                            | $           | 310,258 |   | $ | 287,639 |   |

|                                                                  | **At**      |   |
|-----------------------------------------------------------------------|-------------|--------|
| *(In                millions)*                                        | **9/30/06** |   | **12/31/05** |   |
|                                                                  |        |   |   |   |   |   |
| Loans,                net of deferred income                          | $           | 12,444 |   | $ | 15,868 |   |
| Investment                in financing leases, net of deferred income |        | 213    |   |   | 769 |   |
|                                                                  |        | 12,657 |   |   | 16,637 |   |
| Less                allowance for losses                              |        | (29    | ) |   | (22 | ) |
| Financing                receivables - net                            | $           | 12,628 |   | $ | 16,615 |   |

----

|                                                     | **At**      |   |
|----------------------------------------------------------|-------------|--------|
| *(In                millions)*                           | **9/30/06** |   | **12/31/05** |   |
|                                                     |        |   |   |   |   |   |
| Goodwill                                                 | $           | 22,205 |   | $ | 21,337 |   |
| Intangible                assets subject to amortization |        | 3,134  |   |   | 2,454 |   |
| Total                                                    | $           | 25,339 |   | $ | 23,791 |   |

|                                            | **2006**                        |   |
|-------------------------------------------------|---------------------------------|--------|
| *(In                millions)*                  | **GE****Commercial****Finance** |   | **GE****Money****(a)** |   | **GE****Industrial****(b)** |   | **GE****Infrastructure****(b)** |   | **Total** |   |
|                                            |                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance                January 1                |                            | $      | 10,621 |   |   |   | $ | 9,184 |   |   |   | $ | 1,406 |   |   |   | $ | 126 |   |   | $ | 21,337 |   |
| Acquisitions/purchase                accounting |                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| adjustments                                     |                            |   | 378 |   |   |   |   | 224 |   |   |   |   | (4 | ) |   |   |   | - |   |   |   | 598 |   |
| Currency                exchange and other      |                            |   | 63 |   |   |   |   | 165 |   |   |   |   | 41 |   |   |   |   | 1 |   |   |   | 270 |   |
| Balance                September 30             |                            | $      | 11,062 |   |   |   | $ | 9,573 |   |   |   | $ | 1,443 |   |   |   | $ | 127 |   |   | $ | 22,205 |   |
|                                            |                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

| (a) | Formerly                known as GE Consumer Finance.                                                  |   |
|-----|-------------------------------------------------------------------------------------------------------------|--------|
| (b) | Included                only portions of the segment that are financial services                businesses. |   |

**Intangible      Assets Subject to Amortization**

|                                            | **At**                          |
|-------------------------------------------------|---------------------------------|
|                                            | **9/30/06**                     |   | **12/31/05** |
| *(In                millions)*                  | **Gross****carrying****amount** |   | **Accumulated****amortization** |   | **Net** |   | **Gross****carrying****amount** |   | **Accumulated****amortization** |   | **Net** |
|                                            |                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Capitalized                software             | $                               | 1,619 |   | $ | (921 | ) | $ | 698 |   | $ | 1,477 |   | $ | (798 | ) | $ | 679 |
| Patents,                licenses and trademarks |                            | 462 |   |   | (288 | ) |   | 174 |   |   | 497 |   |   | (272 | ) |   | 225 |
| All                other                        |                            | 3,510 |   |   | (1,248 | ) |   | 2,262 |   |   | 2,565 |   |   | (1,015 | ) |   | 1,550 |
| Total                                           | $                               | 5,591 |   | $ | (2,457 | ) | $ | 3,134 |   | $ | 4,539 |   | $ | (2,085 | ) | $ | 2,454 |

----

|                                                   | **At**      |    |
|--------------------------------------------------------|-------------|---------|
| *(In                millions)*                         | **9/30/06** |    | **12/31/05** |   |
|                                                   |        |    |   |   |   |   |
| **Short-Term                Borrowings**               |        |    |   |   |   |   |
|                                                   |        |    |   |   |   |   |
| Commercial                paper                        |        |    |   |   |   |   |
| U.S.                                                   |        |    |   |   |   |   |
| Unsecured                                              | $           | 65,208  |   | $ | 67,643 |   |
| Asset-backed(a)                                        |        | 6,927   |   |   | 9,267 |   |
| Non-U.S.                                               |        | 24,137  |   |   | 20,456 |   |
| Current                portion of long-term debt(b)(c) |        | 49,659  |   |   | 41,792 |   |
| Other                                                  |        | 19,142  |   |   | 18,514 |   |
| Total                                                  |        | 165,073 |   |   | 157,672 |   |
|                                                   |        |    |   |   |   |   |
| **Long-Term                Borrowings**                |        |    |   |   |   |   |
|                                                   |        |    |   |   |   |   |
| Senior                notes                            |        |    |   |   |   |   |
| Unsecured                                              |        | 211,911 |   |   | 180,546 |   |
| Asset-backed(d)                                        |        | 6,181   |   |   | 6,845 |   |
| Extendible                notes(e)                     |        | 11,991  |   |   | 14,022 |   |
| Subordinated                notes(f)                   |        | 5,040   |   |   | 2,984 |   |
| Total                                                  |        | 235,123 |   |   | 204,397 |   |
| Total                borrowings                        | $           | 400,196 |   | $ | 362,069 |   |
|                                                   |        |    |   |   |   |   |

| (a)  | Entirely                obligations of consolidated, liquidating securitization entities.                See note                8.                                                                                                                                      |
|-----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (b)  | Included                short-term borrowings by consolidated, liquidating securitization                entities                of $497 million and $697 million at September 30, 2006, and December                31,                2005, respectively. See note 8.  |
| (c)  | Included                $250 million of subordinated notes guaranteed by GE at both September                30,                2006, and December 31, 2005.                                                                                                             |
| (d)  | Included                asset-backed senior notes issued by consolidated, liquidating                securitization entities of $5,024 million and $6,845 million at September                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 September                30,                2006, and December 31, 2005.                                                                                                                  |

|                                                  | **Three                months ended****September                30** |   | **Nine                months ended****September                30** |   |
|-------------------------------------------------------|----------------------------------------------------------------------|--------|---------------------------------------------------------------------|--------|
| *(In                millions)*                        | **2006**                                                             |   | **2005**                                                            |   | **2006** |   | **2005** |   |
|                                                  |                                                                 |   |                                                                |   |   |   |   |   |   |   |   |   |
| Net                earnings                           | $                                                                    | 2,609  |                                                                | $      | 2,685 |   | $ | 7,640 |   | $ | 7,252 |   |
| Investment                securities - net            |                                                                 | 807    |                                                                |   | (1,148 | ) |   | (566 | ) |   | (566 | ) |
| Currency                translation adjustments - net |                                                                 | 339    |                                                                |   | 243 |   |   | 1,487 |   |   | (2,015 | ) |
| Cash                flow hedges - net                 |                                                                 | (225   | )                                                                   |   | 58 |   |   | 348 |   |   | 415 |   |
| Minimum                pension liabilities - net      |                                                                 | (1     | )                                                                   |   | 5 |   |   | (14 | ) |   | (6 | ) |
| Total                                                 | $                                                                    | 3,529  |                                                                | $      | 1,843 |   | $ | 8,895 |   | $ | 5,080 |   |

----

|                                    | **At**      |   |
|-----------------------------------------|-------------|--------|
| *(In                millions)*          | **9/30/06** |   | **12/31/05** |   |
|                                    |        |   |   |   |   |   |
| Receivables                secured by:  |        |   |   |   |   |   |
| Equipment                               | $           | 9,640  |   | $ | 12,949 |   |
| Commercial                real estate   |        | 11,467 |   |   | 13,010 |   |
| Residential                real estate  |        | 7,726  |   |   | 8,882 |   |
| Other                assets             |        | 14,758 |   |   | 12,869 |   |
| Credit                card receivables  |        | 12,853 |   |   | 10,039 |   |
| Trade                receivables        |        | 163    |   |   | - |   |
| Total                securitized assets | $           | 56,607 |   | $ | 57,749 |   |

|                                    | **At**      |   |
|-----------------------------------------|-------------|--------|
| *(In                millions)*          | **9/30/06** |   | **12/31/05** |   |
|                                    |        |   |   |   |   |   |
| Off-balance                sheet(a)(b)  | $           | 42,951 |   | $ | 39,845 |   |
| On-balance                sheet(c)      |        | 13,656 |   |   | 17,904 |   |
| Total                securitized assets | $           | 56,607 |   | $ | 57,749 |   |
|                                    |        |   |   |   |   |   |

| (a)  | At                September 30, 2006, and December 31, 2005, liquidity support amounted                to                $1,737 million and $1,931 million, respectively. These amounts are                net of                $3,162 million and $3,786 million, respectively, participated or                deferred                beyond one year. Credit support amounted to $4,977 million and $5,988                million at September 30, 2006, and December 31, 2005,                respectively.  |
|-----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (b)  | Liabilities                for recourse obligations related to off-balance sheet assets amounted                to                $74 million and $93 million at September 30, 2006, and December 31,                2005,                respectively.                                                                                                                                                                                                                                                           |
| (c)       | At                September 30, 2006, and December 31, 2005, liquidity support amounted                to                $7,315 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 $3,535 million and $4,780                million at September 30, 2006, and December 31, 2005,                respectively.                          |

|                                                | **At**      |   |
|-----------------------------------------------------|-------------|--------|
| *(In                millions)*                      | **9/30/06** |   | **12/31/05** |   |
|                                                |        |   |   |   |   |   |
| Financing                receivables - net (note 4) | $           | 12,628 |   | $ | 16,615 |   |
| Other                                               |        | 1,028  |   |   | 1,289 |   |
| Total                                               | $           | 13,656 |   | $ | 17,904 |   |

----

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

**A.      Results of Operations**

**Overview**

----

| · | GE                Commercial Finance - Transportation Financial Services Group of                CitiCapital, Antares Capital Corp. and the custom fleet business                of                National Australia Bank Ltd. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | GE                Money (formerly GE Consumer Finance) - joint ventures with Garanti                Bank                and Hyundai Card Company. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------|

**Segment      Operations**

----

**Summary      of Operating Segments**

|                                                            | **Three                months ended****September                30** |    | **Nine                months ended****September                30** |   |
|-----------------------------------------------------------------|----------------------------------------------------------------------|---------|---------------------------------------------------------------------|--------|
| *(In                millions)*                                  | **2006**                                                             |    | **2005**                                                            |   | **2006** |   | **2005** |   |
|                                                            |                                                                 |    |                                                                |   |   |   |   |   |   |   |   |   |
|                                                            |                                                                 |    |                                                                |   |   |   |   |   |   |   |   |   |
| **Revenues**                                                    |                                                                 |    |                                                                |   |   |   |   |   |   |   |   |   |
| GE                Commercial Finance                            | $                                                                    | 6,006   |                                                                | $      | 5,414 |   | $ | 17,017 |   | $ | 15,415 |   |
| GE                Money(a)                                      |                                                                 | 5,590   |                                                                |   | 4,913 |   |   | 15,948 |   |   | 14,530 |   |
| GE                Industrial                                    |                                                                 | 8,526   |                                                                |   | 8,257 |   |   | 25,454 |   |   | 24,178 |   |
| GE                Infrastructure                                |                                                                 | 12,104  |                                                                |   | 10,128 |   |   | 33,588 |   |   | 29,723 |   |
| Total                segment revenues                           |                                                                 | 32,226  |                                                                |   | 28,712 |   |   | 92,007 |   |   | 83,846 |   |
| GECS                corporate items and eliminations(b)         |                                                                 | 1,196   |                                                                |   | 1,448 |   |   | 3,696 |   |   | 3,820 |   |
| Total                revenues                                   |                                                                 | 33,422  |                                                                |   | 30,160 |   |   | 95,703 |   |   | 87,666 |   |
| Less                portion of GE revenues not included in GECS |                                                                 | (17,147 | )                                                                   |   | (15,294 | ) |   | (49,440 | ) |   | (45,234 | ) |
| Total                revenues in GECS                           | $                                                                    | 16,275  |                                                                | $      | 14,866 |   | $ | 46,263 |   | $ | 42,432 |   |
|                                                            |                                                                 |    |                                                                |   |   |   |   |   |   |   |   |   |
| **Segment                profit**                               |                                                                 |    |                                                                |   |   |   |   |   |   |   |   |   |
| GE                Commercial Finance                            | $                                                                    | 1,290   |                                                                | $      | 1,212 |   | $ | 3,521 |   | $ | 3,010 |   |
| GE                Money(a)                                      |                                                                 | 916     |                                                                |   | 810 |   |   | 2,632 |   |   | 2,280 |   |
| GE                Industrial                                    |                                                                 | 692     |                                                                |   | 629 |   |   | 2,021 |   |   | 1,790 |   |
| GE                Infrastructure                                |                                                                 | 2,336   |                                                                |   | 1,880 |   |   | 6,146 |   |   | 5,336 |   |
| Total                segment profit                             |                                                                 | 5,234   |                                                                |   | 4,531 |   |   | 14,320 |   |   | 12,416 |   |
| GECS                corporate items and eliminations            |                                                                 | (102    | )                                                                   |   | 129 |   |   | (179 | ) |   | 45 |   |
| Less                portion of GE segment profit not included   |                                                                 |    |                                                                |   |   |   |   |   |   |   |   |   |
| in                GECS                                          |                                                                 | (2,428  | )                                                                   |   | (2,060 | ) |   | (6,667 | ) |   | (5,970 | ) |
| Earnings                in GECS from continuing operations      |                                                                 | 2,704   |                                                                |   | 2,600 |   |   | 7,474 |   |   | 6,491 |   |
| Earnings                (loss) in GECS from discontinued        |                                                                 |    |                                                                |   |   |   |   |   |   |   |   |   |
| operations,                net of taxes                         |                                                                 | (95     | )                                                                   |   | 85 |   |   | 166 |   |   | 761 |   |
| Total                net earnings in GECS                       | $                                                                    | 2,609   |                                                                | $      | 2,685 |   | $ | 7,640 |   | $ | 7,252 |   |
|                                                            |                                                                 |    |                                                                |   |   |   |   |   |   |   |   |   |

| (a)  | Formerly                known as GE Consumer Finance.                                                                                                                                                      |   |
|-----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| (b)       | 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****September                30** |   | **Nine                months ended****September                30** |   |
|-----------------------------------|----------------------------------------------------------------------|--------|---------------------------------------------------------------------|--------|
| *(In                millions)*    | **2006**                                                             |   | **2005**                                                            |   | **2006** |   | **2005** |   |
|                              |                                                                 |   |                                                                |   |   |   |   |   |   |   |   |   |
| **Revenues**                      | $                                                                    | 6,006  |                                                                | $      | 5,414 |   | $ | 17,017 |   | $ | 15,415 |   |
|                              |                                                                 |   |                                                                |   |   |   |   |   |   |   |   |   |
| **Segment                profit** | $                                                                    | 1,290  |                                                                | $      | 1,212 |   | $ | 3,521 |   | $ | 3,010 |   |
|                              |                                                                 |   |                                                                |   |   |   |   |   |   |   |   |   |

|                            | **At**      |    |        |   |         |
|---------------------------------|-------------|---------|-------------|--------|--------------|
| *(In                millions)*  | **9/30/06** |    | **9/30/05** |   | **12/31/05** |   |   |   |   |
|                            |        |    |        |   |         |   |   |   |   |   |   |   |
| **Total                assets** | $           | 215,276 |        | $      | 183,139      |   | $ | 190,546 |   |   |   |   |

|                                    | **Three                months ended****September                30** |   | **Nine                months ended****September                30** |   |
|-----------------------------------------|----------------------------------------------------------------------|--------|---------------------------------------------------------------------|--------|
| *(In                millions)*          | **2006**                                                             |   | **2005**                                                            |   | **2006** |   | **2005** |   |
|                                    |                                                                 |   |                                                                |   |   |   |   |   |   |   |   |   |
| **Revenues                in GE**       |                                                                 |   |                                                                |   |   |   |   |   |   |   |   |   |
| Capital                Solutions        | $                                                                    | 3,101  |                                                                | $      | 2,834 |   | $ | 8,968 |   | $ | 8,579 |   |
| Real                Estate              |                                                                 | 1,328  |                                                                |   | 1,022 |   |   | 3,450 |   |   | 2,664 |   |
|                                    |                                                                 |   |                                                                |   |   |   |   |   |   |   |   |   |
| **Segment                profit in GE** |                                                                 |   |                                                                |   |   |   |   |   |   |   |   |   |
| Capital                Solutions        | $                                                                    | 525    |                                                                | $      | 444 |   | $ | 1,297 |   | $ | 1,055 |   |
| Real                Estate              |                                                                 | 440    |                                                                |   | 343 |   |   | 1,215 |   |   | 893 |   |

|                             | **At**      |   |        |   |         |
|----------------------------------|-------------|--------|-------------|--------|--------------|
| *(In                millions)*   | **9/30/06** |   | **9/30/05** |   | **12/31/05** |   |   |   |   |
|                             |        |   |        |   |         |   |   |   |   |   |   |   |
| **Assets                in GE**  |        |   |        |   |         |   |   |   |   |   |   |   |
| Capital                Solutions | $           | 92,560 |        | $      | 83,724       |   | $ | 87,306 |   |   |   |   |
| Real                Estate       |        | 48,525 |        |   | 34,845       |   |   | 35,323 |   |   |   |   |

----

**GE      Money**

|                              | **Three                months ended****September                30** |    | **Nine                months ended****September                30** |   |
|-----------------------------------|----------------------------------------------------------------------|---------|---------------------------------------------------------------------|--------|
| *(In                millions)*    | **2006**                                                             |    | **2005**                                                            |   | **2006** |   | **2005** |   |
|                              |                                                                 |    |                                                                |   |   |   |   |   |   |   |   |   |
| **Revenues**                      | $                                                                    | 5,590   |                                                                | $      | 4,913 |   | $ | 15,948 |   | $ | 14,530 |   |
|                              |                                                                 |    |                                                                |   |   |   |   |   |   |   |   |   |
| **Segment                profit** | $                                                                    | 916     |                                                                | $      | 810 |   | $ | 2,632 |   | $ | 2,280 |   |
|                              |                                                                 |    |                                                                |   |   |   |   |   |   |   |   |   |
|                              |                                                                 |    |                                                                |   |   |   |   |   |   |   |   |   |
|                              | **At**                                                               |    |                                                                |   |   |
| *(In                millions)*    | **9/30/06**                                                          |    | **9/30/05**                                                         |   | **12/31/05** |   |   |   |   |
|                              |                                                                 |    |                                                                |   |   |   |   |   |   |   |   |   |
| **Total                assets**   | $                                                                    | 175,649 |                                                                | $      | 153,315 |   | $ | 158,829 |   |   |   |   |

----

**GE      Industrial**

|                                             | **Three                months ended****September                30** |   | **Nine                months ended****September                30** |   |
|--------------------------------------------------|----------------------------------------------------------------------|--------|---------------------------------------------------------------------|--------|
| *(In                millions)*                   | **2006**                                                             |   | **2005**                                                            |   | **2006** |   | **2005** |   |
|                                             |                                                                 |   |                                                                |   |   |   |   |   |   |   |   |   |
| **Revenues**                                     | $                                                                    | 8,526  |                                                                | $      | 8,257 |   | $ | 25,454 |   | $ | 24,178 |   |
| Less                portion of GE Industrial not |                                                                 |   |                                                                |   |   |   |   |   |   |   |   |   |
| included                in GECS                  |                                                                 | (6,678 | )                                                                   |   | (6,548 | ) |   | (20,175 | ) |   | (19,243 | ) |
| Total                revenues in GECS            | $                                                                    | 1,848  |                                                                | $      | 1,709 |   | $ | 5,279 |   | $ | 4,935 |   |
|                                             |                                                                 |   |                                                                |   |   |   |   |   |   |   |   |   |
| **Segment                profit**                | $                                                                    | 692    |                                                                | $      | 629 |   | $ | 2,021 |   | $ | 1,790 |   |
| Less                portion of GE Industrial not |                                                                 |   |                                                                |   |   |   |   |   |   |   |   |   |
| included                in GECS                  |                                                                 | (601   | )                                                                   |   | (563 | ) |   | (1,854 | ) |   | (1,678 | ) |
| Total                segment profit in GECS      | $                                                                    | 91     |                                                                | $      | 66 |   | $ | 167 |   | $ | 112 |   |
|                                             |                                                                 |   |                                                                |   |   |   |   |   |   |   |   |   |
| **Revenues                in GE**                |                                                                 |   |                                                                |   |   |   |   |   |   |   |   |   |
| Consumer                & Industrial         | $                                                                    | 3,533  |                                                                | $      | 3,522 |   | $ | 10,919 |   | $ | 10,359 |   |
| Equipment                Services                |                                                                 | 1,848  |                                                                |   | 1,709 |   |   | 5,279 |   |   | 4,935 |   |
| Plastics                                         |                                                                 | 1,677  |                                                                |   | 1,663 |   |   | 5,005 |   |   | 4,951 |   |
|                                             |                                                                 |   |                                                                |   |   |   |   |   |   |   |   |   |
| **Segment                profit in GE**          |                                                                 |   |                                                                |   |   |   |   |   |   |   |   |   |
| Consumer                & Industrial         | $                                                                    | 283    |                                                                | $      | 196 |   | $ | 821 |   | $ | 588 |   |
| Equipment                Services                |                                                                 | 91     |                                                                |   | 66 |   |   | 167 |   |   | 112 |   |
| Plastics                                         |                                                                 | 152    |                                                                |   | 197 |   |   | 560 |   |   | 645 |   |

----

**GE      Infrastructure**

|                                                 | **Three                months ended****September                30** |    | **Nine                months ended****September                30** |   |
|------------------------------------------------------|----------------------------------------------------------------------|---------|---------------------------------------------------------------------|--------|
| *(In                millions)*                       | **2006**                                                             |    | **2005**                                                            |   | **2006** |   | **2005** |   |
|                                                 |                                                                 |    |                                                                |   |   |   |   |   |   |   |   |   |
| **Revenues**                                         | $                                                                    | 12,104  |                                                                | $      | 10,128 |   | $ | 33,588 |   | $ | 29,723 |   |
| Less                portion of GE Infrastructure not |                                                                 |    |                                                                |   |   |   |   |   |   |   |   |   |
| included                in GECS                      |                                                                 | (10,469 | )                                                                   |   | (8,746 | ) |   | (29,265 | ) |   | (25,991 | ) |
| Total                revenues in GECS                | $                                                                    | 1,635   |                                                                | $      | 1,382 |   | $ | 4,323 |   | $ | 3,732 |   |
|                                                 |                                                                 |    |                                                                |   |   |   |   |   |   |   |   |   |
| **Segment                profit**                    | $                                                                    | 2,336   |                                                                | $      | 1,880 |   | $ | 6,146 |   | $ | 5,336 |   |
| Less                portion of GE Infrastructure not |                                                                 |    |                                                                |   |   |   |   |   |   |   |   |   |
| included                in GECS                      |                                                                 | (1,827  | )                                                                   |   | (1,497 | ) |   | (4,813 | ) |   | (4,292 | ) |
| Total                segment profit in GECS          | $                                                                    | 509     |                                                                | $      | 383 |   | $ | 1,333 |   | $ | 1,044 |   |
|                                                 |                                                                 |    |                                                                |   |   |   |   |   |   |   |   |   |
| **Revenues                in GE**                    |                                                                 |    |                                                                |   |   |   |   |   |   |   |   |   |
| Aviation                                             | $                                                                    | 3,157   |                                                                | $      | 3,007 |   | $ | 9,489 |   | $ | 8,568 |   |
| Aviation                Financial Services           |                                                                 | 1,075   |                                                                |   | 964 |   |   | 2,990 |   |   | 2,600 |   |
| Energy                                               |                                                                 | 5,055   |                                                                |   | 3,681 |   |   | 13,332 |   |   | 11,516 |   |
| Energy                Financial Services             |                                                                 | 524     |                                                                |   | 379 |   |   | 1,189 |   |   | 989 |   |
| Oil                & Gas                         |                                                                 | 1,029   |                                                                |   | 906 |   |   | 2,895 |   |   | 2,310 |   |
| Transportation                                       |                                                                 | 1,016   |                                                                |   | 910 |   |   | 3,041 |   |   | 2,558 |   |
|                                                 |                                                                 |    |                                                                |   |   |   |   |   |   |   |   |   |
| **Segment                profit in GE**              |                                                                 |    |                                                                |   |   |   |   |   |   |   |   |   |
| Aviation                                             | $                                                                    | 706     |                                                                | $      | 604 |   | $ | 2,079 |   | $ | 1,821 |   |
| Aviation                Financial Services           |                                                                 | 261     |                                                                |   | 195 |   |   | 777 |   |   | 543 |   |
| Energy                                               |                                                                 | 747     |                                                                |   | 584 |   |   | 1,872 |   |   | 1,786 |   |
| Energy                Financial Services             |                                                                 | 234     |                                                                |   | 177 |   |   | 497 |   |   | 450 |   |
| Oil                & Gas                         |                                                                 | 161     |                                                                |   | 107 |   |   | 324 |   |   | 209 |   |
| Transportation                                       |                                                                 | 196     |                                                                |   | 161 |   |   | 565 |   |   | 344 |   |

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**Discontinued      Insurance Operations **

|                                                     | **Three                months ended****September                30** |   | **Nine                months ended****September                30** |   |
|----------------------------------------------------------|----------------------------------------------------------------------|--------|---------------------------------------------------------------------|--------|
| *(In                millions)*                           | **2006**                                                             |   | **2005**                                                            |   | **2006** |   | **2005** |   |
|                                                     |                                                                 |   |                                                                |   |   |   |   |   |   |   |   |   |
| Earnings                (loss) in GECS from discontinued |                                                                 |   |                                                                |   |   |   |   |   |   |   |   |   |
| operations,                net of taxes                  | $                                                                    | (95    | )                                                                   | $      | 85 |   | $ | 166 |   | $ | 761 |   |

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**B.      Statement of Financial Position**

**Overview      of Financial Position**

| · | In                October 2006, Swiss Re agreed to purchase GE Life, our U.K.-based                life                insurance operation. Since the first quarter of 2006, when we initiated                our plan to sell GE Life, we have separately reported the assets                and                liabilities of GE Life as discontinued operations for all periods                presented. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | 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. We have separately reported                the                assets and liabilities of Genworth as discontinued operations for                all                periods presented. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | During                the first nine months of 2006, we completed the acquisitions of Arden                Realty, Inc., the custom fleet business of National Australia Bank                Ltd.,                and the senior housing portfolios of Formation Capital LLC at GE                Commercial Finance; and the private-label credit card portfolio of                Hudson’s Bay Co. at GE Money. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | The                U.S. dollar was weaker at September 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 the first nine                months                of 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**

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**Financing      receivables **

|                                 | **Delinquency                rates at** |    |
|--------------------------------------|-----------------------------------------|---------|
|                                 | **9/30/06**                             | **(a)** | **12/31/05** |   | **9/30/05** |   |
|                                 |                                    |    |   |   |   |   |
| GE                Commercial Finance | 1.33                                    | %       | 1.31 | % | 1.24 | % |
| GE                Money              | 5.14                                    |    | 5.08 |   | 5.23 |   |
|                                 |                                    |    |   |   |   |   |

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

**C.      Debt Instruments**

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**D.      Other Information**

**New      Accounting Standards**

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

*Employers’ Accounting for Defined Benefit Pension and        Other Postretirement Plans*

**Item      4. Controls and Procedures**

**Part      II. Other Information**

**Item      1. Legal Proceedings **

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**Item      6. Exhibits**

|   | Exhibit                12     | Computation                of Ratio of Earnings to Fixed Charges and Computation of Ratio of                Earnings                to Combined Fixed Charges and Preferred Stock Dividends.  |
|--------|------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | Exhibit                31(a)  | Certification                Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange                Act of 1934, as Amended.                                                  |
|   | Exhibit                31(b)  | Certification                Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange                Act of 1934, as Amended.                                                  |
|   | Exhibit                32     | Certification                Pursuant to 18 U.S.C. Section 1350.                                                                                                                              |
|   | Exhibit                99     | Financial                Measures that Supplement Generally Accepted Accounting                Principles.                                                                                    |

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**Signatures**

| General                Electric Capital Services, Inc.(Registrant)   |
|--------------------------------------------------------------------------------|
| October                30, 2006                                                |   | /s/                Philip D. Ameen |   |
| Date                                                                           |   | Philip                D. AmeenSenior                Vice President and ControllerDuly                Authorized Officer and Principal Accounting                Officer |

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