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)

                                                        Six Months Ended
                                                            June 30,     
                                                         1997       1996 
Consolidated operations:
  Income before income tax expense and net dividends
    on preferred securities ..........................  $  305     $  584 
  Undistributed income of equity investee ............     (23)       (15)
  Fixed charges deducted from income
    Interest expense .................................     326        331 
    Implicit interest in rents .......................      10         11 
      Total fixed charges deducted from income .......     336        342 
        Earnings available for fixed charges..........  $  618     $  911 
  Fixed charges per above ............................  $  336     $  342 
  Capitalized interest ...............................       6          6 
      Total fixed charges ............................     342        348 
      Dividends on preferred stock and securities ....      65         32 
        Combined fixed charges and preferred
          stock dividends ............................  $  407     $  380 
          Ratio of earnings to fixed charges .........    1.80       2.62 
          Ratio of earnings to combined fixed charges
            and preferred stock dividends ............    1.52       2.40 

Consolidated operations, corporate fixed charges 
  and preferred stock dividends only:
    Income before income tax expense and net dividends
      on preferred securities ........................  $  305     $  584 
    Undistributed income of equity investee ..........     (23)       (15)
    Corporate fixed charges deducted from income -
      corporate interest expense .....................      87         89 
      Earnings available for fixed charges ...........  $  369     $  658 
    Total corporate fixed charges per above ..........  $   87     $   89 
    Capitalized interest related to real estate
      operations .....................................       5          5 
      Total corporate fixed charges ..................      92         94 
      Dividends on preferred stock and securities ....      65         32 
        Combined corporate fixed charges and
          preferred stock dividends ..................  $  157     $  126 
          Ratio of earnings to corporate fixed charges    3.99       6.98 
          Ratio of earnings to combined corporate 
            fixed charges and preferred stock
            dividends ................................    2.35       5.23 






                                                        Exhibit 12 (continued)

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



                                  (Unaudited)
                                ($ in millions)

                                                        Six Months Ended
                                                            June 30,     
                                                         1997       1996 
American General Finance:
  Income before income tax expense ...................  $   83     $   92
  Fixed charges deducted from income
    Interest expense .................................     249        247
    Implicit interest in rents .......................       5          6
      Total fixed charges deducted from income .......     254        253
        Earnings available for fixed charges .........  $  337     $  345
          Ratio of earnings to fixed charges .........    1.33       1.36













































                                                        Exhibit 12 (continued)
<PAGE>



             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
                                                            June 30,     
                                                         1997       1996 
Consolidated operations:
  Income (loss) before income tax expense and net 
    dividends on preferred securities ................  $  (46)    $  269 
  Undistributed income of equity investee ............     (11)        (8)
  Fixed charges deducted from income
    Interest expense .................................     164        164 
    Implicit interest in rents .......................       5          6 
      Total fixed charges deducted from income .......     169        170 
        Earnings available for fixed charges..........  $  112     $  431 
  Fixed charges per above ............................  $  169     $  170 
  Capitalized interest ...............................       3          3 
      Total fixed charges ............................     172        173 
      Dividends on preferred stock and securities ....      37         17 
        Combined fixed charges and preferred
          stock dividends ............................  $  209     $  190 
          Ratio of earnings to fixed charges .........       -*      2.50 
          Ratio of earnings to combined fixed charges
            and preferred stock dividends ............       -*      2.27 

Consolidated operations, corporate fixed charges 
  and preferred stock dividends only:
    Income (loss) before income tax expense and net 
      dividends on preferred securities ..............  $  (46)    $  269 
    Undistributed income of equity investee ..........     (11)        (8)
    Corporate fixed charges deducted from income -
      corporate interest expense .....................      47         45 
      Earnings available for fixed charges ...........  $  (10)    $  306 
    Total corporate fixed charges per above ..........  $   47     $   45 
    Capitalized interest related to real estate
      operations .....................................       2          2 
      Total corporate fixed charges ..................      49         47 
      Dividends on preferred stock and securities ....      37         17 
        Combined corporate fixed charges and
          preferred stock dividends ..................  $   86     $   64 
          Ratio of earnings to corporate fixed charges       -*      6.43 
          Ratio of earnings to combined corporate 
            fixed charges and preferred stock 
            dividends ................................       -*      4.73 

      * Earnings were inadequate to cover fixed charges.  The amount of
        deficiency was as follows:

                                                                   Amount 
        Consolidated operations:
            Ratio of earnings to fixed charges ...............      $ 60  
            Ratio of earnings to combined fixed charges
              and preferred stock dividends ..................        97  
        Consolidated operations, corporate fixed charges
          and preferred stock dividends only:
            Ratio of earnings to corporate fixed charges .....        59  
            Ratio of earnings to combined corporate fixed
<PAGE>



              charges and preferred stock dividends ..........        96  

                                                        Exhibit 12 (continued)

             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
                                                            June 30,     
                                                         1997       1996 
American General Finance:
  Income before income tax expense ...................  $   21     $   48
  Fixed charges deducted from income
    Interest expense .................................     124        121
    Implicit interest in rents .......................       2          3
      Total fixed charges deducted from income .......     126        124
        Earnings available for fixed charges .........  $  147     $  172
          Ratio of earnings to fixed charges .........    1.17       1.38
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