AMERICAN GENERAL CORPORATION
             FORM 10-Q
For the Quarter Ended September 30, 1997




                                                                    Exhibit 12

             COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND
                  RATIO OF EARNINGS TO COMBINED FIXED CHARGES
                         AND PREFERRED STOCK DIVIDENDS
                                  (Unaudited)
                                ($ in millions)

                                                        Nine Months Ended
                                                          September 30,  
                                                         1997       1996 
Consolidated operations:
  Income before income tax expense and net dividends
    on preferred securities ..........................  $  689     $  918 
  Undistributed income of equity investee ............     (35)       (24)
  Fixed charges deducted from income
    Interest expense .................................     485        495 
    Implicit interest in rents .......................      15         16 
      Total fixed charges deducted from income .......     500        511 
        Earnings available for fixed charges..........  $1,154     $1,405 
  Fixed charges per above ............................  $  500     $  511 
  Capitalized interest ...............................       5          9 
      Total fixed charges ............................     505        520 
      Dividends on preferred stock and securities ....     102         49 
        Combined fixed charges and preferred
          stock dividends ............................  $  607     $  569 
          Ratio of earnings to fixed charges .........    2.28       2.70 
          Ratio of earnings to combined fixed charges
            and preferred stock dividends ............    1.90       2.47 

Consolidated operations, corporate fixed charges 
  and preferred stock dividends only:
    Income before income tax expense and net dividends
      on preferred securities ........................  $  689     $  918 
    Undistributed income of equity investee ..........     (35)       (24)
    Corporate fixed charges deducted from income -
      corporate interest expense .....................     136        135 
      Earnings available for fixed charges ...........  $  790     $1,029 
    Total corporate fixed charges per above ..........  $  136     $  135 
    Capitalized interest related to real estate
      operations .....................................       5          8 
      Total corporate fixed charges ..................     141        143 
      Dividends on preferred stock and securities ....     102         49 
        Combined corporate fixed charges and
          preferred stock dividends ..................  $  243     $  192 
          Ratio of earnings to corporate fixed charges    5.61       7.21 
          Ratio of earnings to combined corporate 
            fixed charges and preferred stock
            dividends ................................    3.26       5.38 




                                                        Exhibit 12 (continued)
<PAGE>



   AMERICAN GENERAL CORPORATION
             FORM 10-Q
For the Quarter Ended September 30, 1997

             COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND
                  RATIO OF EARNINGS TO COMBINED FIXED CHARGES
                         AND PREFERRED STOCK DIVIDENDS
                                  (Unaudited)
                                ($ in millions)

                                                        Nine Months Ended
                                                          September 30,  
                                                         1997       1996 
American General Finance:
  Income before income tax expense ...................  $  148     $  160
  Fixed charges deducted from income
    Interest expense .................................     366        369
    Implicit interest in rents .......................       8          9
      Total fixed charges deducted from income .......     374        378
        Earnings available for fixed charges .........  $  522     $  538
          Ratio of earnings to fixed charges .........    1.39       1.42






































                                                        Exhibit 12 (continued)
<PAGE>



   AMERICAN GENERAL CORPORATION
             FORM 10-Q
For the Quarter Ended September 30, 1997

             COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND
                  RATIO OF EARNINGS TO COMBINED FIXED CHARGES
                         AND PREFERRED STOCK DIVIDENDS
                                  (Unaudited)
                                ($ in millions)

                                                          Quarter Ended
                                                          September 30,  
                                                         1997       1996 
Consolidated operations:
  Income before income tax expense and net 
    dividends on preferred securities ................  $  384     $  334 
  Undistributed income of equity investee ............     (12)        (9)
  Fixed charges deducted from income
    Interest expense .................................     159        164 
    Implicit interest in rents .......................       5          5 
      Total fixed charges deducted from income .......     164        169 
        Earnings available for fixed charges..........  $  536     $  494 
  Fixed charges per above ............................  $  164     $  169 
  Capitalized interest ...............................       -          3 
      Total fixed charges ............................     164        172 
      Dividends on preferred stock and securities ....      37         17 
        Combined fixed charges and preferred
          stock dividends ............................  $  201     $  189 
          Ratio of earnings to fixed charges .........    3.27       2.86 
          Ratio of earnings to combined fixed charges
            and preferred stock dividends ............    2.67       2.61 

Consolidated operations, corporate fixed charges 
  and preferred stock dividends only:
    Income before income tax expense and net 
      dividends on preferred securities ..............  $  384     $  334 
    Undistributed income of equity investee ..........     (12)        (9)
    Corporate fixed charges deducted from income -
      corporate interest expense .....................      49         46 
      Earnings available for fixed charges ...........  $  421     $  371 
    Total corporate fixed charges per above ..........  $   49     $   46 
    Capitalized interest related to real estate
      operations .....................................       -          3 
      Total corporate fixed charges ..................      49         49 
      Dividends on preferred stock and securities ....      37         17 
        Combined corporate fixed charges and
          preferred stock dividends ..................  $   86     $   66 
          Ratio of earnings to corporate fixed charges    8.72       7.65 
          Ratio of earnings to combined corporate 
            fixed charges and preferred stock 
            dividends ................................    4.95       5.67 




                                                        Exhibit 12 (continued)

             COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND
                  RATIO OF EARNINGS TO COMBINED FIXED CHARGES
                         AND PREFERRED STOCK DIVIDENDS
                                  (Unaudited)
<PAGE>



   AMERICAN GENERAL CORPORATION
             FORM 10-Q
For the Quarter Ended September 30, 1997

                                ($ in millions)

                                                          Quarter Ended
                                                          September 30,  
                                                         1997       1996 
American General Finance:
  Income before income tax expense ...................  $   65     $   68
  Fixed charges deducted from income
    Interest expense .................................     117        122
    Implicit interest in rents .......................       3          3
      Total fixed charges deducted from income .......     120        125
        Earnings available for fixed charges .........  $  185     $  193
          Ratio of earnings to fixed charges .........    1.54       1.55
<PAGE>