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, 2001

                                  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 1-7422


                    AMERICAN GENERAL FINANCE, INC.
        (Exact name of registrant as specified in its charter)



                 Indiana                            35-1313922
        (State of Incorporation)                 (I.R.S. Employer
                                                Identification No.)


 601 N.W. Second Street, Evansville, IN               47708
(Address of principal executive offices)           (Zip Code)


                            (812) 424-8031
         (Registrant's telephone number, including area code)



Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange
Act of 1934 during the preceding 12 months (or for such shorter period
that the registrant was required to file such reports), and (2) has
been subject to such filing requirements for the past 90 days.

Yes  X .  No    .

The 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.

At November 13, 2001, there were 2,000,000 shares of the registrant's
common stock, $.50 par value, outstanding.
<PAGE> 2

                      Part I - FINANCIAL INFORMATION


Item 1.  Financial Statements



              AMERICAN GENERAL FINANCE, INC. AND SUBSIDIARIES
                Condensed Consolidated Statements of Income
                                (Unaudited)



                               Three Months Ended       Nine Months Ended
                                 September 30,            September 30,
                                2001       2000        2001           2000
                                         (dollars in thousands)

Revenues
  Finance charges             $432,030   $414,054    $1,283,033   $1,202,909
  Insurance                     48,314     49,678       146,595      146,597
  Other                         22,433     22,484        68,098       73,224

Total revenues                 502,777    486,216     1,497,726    1,422,730

Expenses
  Interest expense             157,238    180,801       491,003      513,917
  Operating expenses           141,986    136,559       419,958      409,117
  Provision for finance
    receivable losses           66,272     50,078       193,950      147,090
  Insurance losses and loss
    adjustment expenses         21,462     22,565        65,698       69,649
  Other charges                 78,297       -           78,297       50,000

Total expenses                 465,255    390,003     1,248,906    1,189,773

Income before provision for
  income taxes                  37,522     96,213       248,820      232,957

Provision for Income Taxes      13,354     35,080        89,885       85,625


Net Income                    $ 24,168   $ 61,133    $  158,935   $  147,332




See Notes to Condensed Consolidated Financial Statements.
<PAGE> 3

              AMERICAN GENERAL FINANCE, INC. AND SUBSIDIARIES
                   Condensed Consolidated Balance Sheets
                                (Unaudited)



                                                 September 30,  December 31,
                                                    2001             2000
                                                   (dollars in thousands)
Assets

Net finance receivables:
  Real estate loans                              $ 7,261,784     $ 7,280,234
  Non-real estate loans                            2,938,937       3,027,989
  Retail sales finance                             1,417,867       1,453,588

Net finance receivables                           11,618,588      11,761,811
Allowance for finance receivable losses             (422,727)       (383,415)
Net finance receivables, less allowance
  for finance receivable losses                   11,195,861      11,378,396

Investment securities                              1,135,936       1,107,533
Cash and cash equivalents                            167,683         163,895
Other assets                                         718,206         758,571

Total assets                                     $13,217,686     $13,408,395


Liabilities and Shareholder's Equity

Long-term debt                                   $ 6,430,196     $ 5,670,670
Commercial paper                                   4,186,977       5,088,513
Deposits                                                -             73,971
Insurance claims and policyholder
  liabilities                                        501,435         519,447
Other liabilities                                    526,087         391,895
Accrued taxes                                         40,756          25,632

Total liabilities                                 11,685,451      11,770,128

Shareholder's equity:
  Common stock                                         1,000           1,000
  Additional paid-in capital                         877,588         877,576
  Accumulated other comprehensive (loss)
    income                                           (71,689)          2,631
  Retained earnings                                  725,336         757,060

Total shareholder's equity                         1,532,235       1,638,267

Total liabilities and shareholder's equity       $13,217,686     $13,408,395




See Notes to Condensed Consolidated Financial Statements.
<PAGE> 4

              AMERICAN GENERAL FINANCE, INC. AND SUBSIDIARIES
              Condensed Consolidated Statements of Cash Flows
                                (Unaudited)



                                                       Nine Months Ended
                                                         September 30,
                                                       2001          2000
                                                     (dollars in thousands)

Cash Flows from Operating Activities
Net income                                          $  158,935    $  147,332
Reconciling adjustments:
  Provision for finance receivable losses              193,950       147,090
  Depreciation and amortization                        110,393       108,002
  Deferral of finance receivable origination
    costs                                              (42,401)      (39,811)
  Deferred income tax (benefit) charge                 (26,082)       15,149
  Change in other assets                                48,218        14,279
  Change in other liabilities                          (27,067)     (116,087)
  Change in insurance claims and policyholder
    liabilities                                        (18,012)       44,654
  Change in taxes receivable and payable                31,436        (7,016)
  Other charges                                         78,297        50,000
  Realized losses on investment securities              55,992         3,441
  Other, net                                             4,747        (1,489)
  Net cash provided by operating activities            568,406       365,544

Cash Flows from Investing Activities
  Finance receivables originated or purchased       (4,571,783)   (4,762,260)
  Principal collections on finance receivables       4,430,703     3,966,343
  Disposition of American General Bank, FSB            (39,998)         -
  Investment securities purchased                     (754,488)     (348,408)
  Investment securities called, matured and sold       692,136       268,286
  Change in premiums on finance receivables
    purchased and deferred charges                     (16,498)      (11,386)
  Other, net                                           (10,552)      (14,528)
Net cash used for investing activities                (270,480)     (901,953)

Cash Flows from Financing Activities
  Proceeds from issuance of long-term debt           1,591,966     1,240,329
  Repayment of long-term debt                         (835,195)   (1,199,659)
  Change in deposits                                    28,924        22,937
  Change in short-term notes payable                  (901,536)      505,546
  Change in short-term collateralized financing           -           29,371
  Dividends paid                                      (178,297)      (42,700)
Net cash (used for) provided by financing
  activities                                          (294,138)      555,824

Increase in cash and cash equivalents                    3,788        19,415
Cash and cash equivalents at beginning of period       163,895       146,710
Cash and cash equivalents at end of period          $  167,683    $  166,125

Supplemental Disclosure of Cash Flow
  Information
    Income taxes paid                               $   84,438    $   76,554
    Interest paid                                   $  498,557    $  531,356




See Notes to Condensed Consolidated Financial Statements.
<PAGE> 5

              AMERICAN GENERAL FINANCE, INC. AND SUBSIDIARIES
         Condensed Consolidated Statements of Comprehensive Income
                                (Unaudited)



                                  Three Months Ended      Nine Months Ended
                                     September 30,          September 30,
                                   2001        2000        2001       2000
                                           (dollars in thousands)


Net income                       $ 24,168    $ 61,133    $158,935   $147,332

Other comprehensive (loss) gain:

  Net unrealized (losses) gains:
    Investment securities          20,091       9,505      15,241      1,390
    Interest rate swaps:
      Transition adjustment          -           -        (42,103)      -
      Current period              (79,453)       -        (91,976)      -
    Minimum pension liability        -           -           (535)      -

  Income tax effect:
    Investment securities          (7,002)     (3,358)     (5,304)      (516)
    Interest rate swaps:
      Transition adjustment          -           -         14,736       -
      Current period               27,809        -         32,193       -
    Minimum pension liability        -           -            187       -

  Net unrealized (losses) gains,
    net of tax                    (38,555)      6,147     (77,561)       874

  Reclassification adjustments
    for realized losses (gains)
    included in net income:
      Investment securities         1,516      (1,005)      4,986     (3,295)

  Income tax effect:
    Investment securities            (530)        351      (1,745)     1,153

  Realized losses (gains)
    included in net income,
    net of tax                        986        (654)      3,241     (2,142)

Other comprehensive (loss) gain,
  net of tax                      (37,569)      5,493     (74,320)    (1,268)


Comprehensive (loss) income      $(13,401)   $ 66,626    $ 84,615   $146,064




See Notes to Condensed Consolidated Financial Statements.
<PAGE> 6

              AMERICAN GENERAL FINANCE, INC. AND SUBSIDIARIES
           Notes to Condensed Consolidated Financial Statements
                            September 30, 2001


Note 1.  Principles of Consolidation

American General Finance, Inc. will be referred to as "AGFI" or
collectively with its subsidiaries, whether directly or indirectly
owned, as the "Company" or "we".  We prepared our condensed
consolidated financial statements using accounting principles generally
accepted in the United States for interim periods.  They include the
accounts of AGFI and its subsidiaries, all of which are wholly owned.
We eliminated all intercompany items.  AGFI is a wholly owned
subsidiary of American General Corporation (American General).
American General is a wholly owned subsidiary of American International
Group, Inc. (AIG).


Note 2.  Adjustments and Reclassifications

Our condensed consolidated financial statements include all
adjustments, consisting only of normal recurring adjustments, that we
considered necessary for a fair presentation of the Company's
consolidated financial position at September 30, 2001 and December 31,
2000, our consolidated results of operations for the three months and
nine months ended September 30, 2001 and 2000, our consolidated cash
flows for the nine months ended September 30, 2001 and 2000, and our
consolidated comprehensive income for the three months and nine months
ended September 30, 2001 and 2000.  Our condensed consolidated
financial statements should be read in conjunction with the
consolidated financial statements and related notes included in our
Annual Report on Form 10-K for the year ended December 31, 2000.

To conform to the 2001 presentation, we reclassified certain items in
the prior period.


Note 3.  Accounting Change

In 2001, we adopted Emerging Issues Task Force (EITF) Issue 99-20,
"Recognition of Interest Income and Impairment on Purchased and
Retained Beneficial Interests in Securitized Financial Assets."  As a
result of applying the impairment provisions of EITF 99-20, we recorded
a $1.0 million ($.6 million aftertax) write-down of the carrying value
of certain collateralized debt obligations in other income.


Note 4.  Future Accounting Change

In July 2001, the Financial Accounting Standards Board issued SFAS 142,
"Goodwill and Other Intangible Assets."  SFAS 142 provides that
goodwill and other intangible assets with indefinite lives are no
longer to be amortized.  These assets are to be reviewed for impairment
annually, or more frequently if impairment indicators are present.
Separable intangible assets that have finite lives will continue to be
amortized over their useful lives.  The amortization provisions of SFAS
142 apply to goodwill and intangible assets acquired after June 30,
2001.  Amortization of goodwill and intangible assets acquired prior to
July 1, 2001 will continue through December 31, 2001.  We will adopt
SFAS 142 on January 1, 2002, after which the Company's earnings will
not be impacted by goodwill amortization.  Impairment testing is
<PAGE> 7

required during the first year of adoption, and resulting impairment
losses, if any, may be reported as the cumulative effect of an
accounting change.  We have not yet determined if the required
impairment testing related to the Company's goodwill and other
intangible assets will require a write-down of any such assets.


Note 5.  Acquisition

On August 29, 2001, AIG acquired American General.  As a result of this
transaction, the Company is a wholly owned indirect subsidiary of AIG.
Concurrent with the acquisition, American General Bank, FSB, a
subsidiary of AGFI, was merged into AIG Federal Savings Bank, an
affiliate of AGFI, with AIG Federal Savings Bank being the surviving
entity.


Note 6.  Derivative Financial Instruments

Our principal borrowing subsidiary is American General Finance
Corporation (AGFC), a wholly owned subsidiary of AGFI. To protect
against interest rate fluctuations, AGFC uses derivative financial
instruments in managing the cost of its debt.  AGFC has generally
limited its use of derivative financial instruments to interest rate
swap agreements to reduce its exposure to market interest rate
increases by synthetically converting certain floating-rate debt to a
fixed-rate basis.

Effective January 1, 2001, we adopted SFAS 133, "Accounting for
Derivative Instruments and Hedging Activities," which requires all
derivative instruments to be recognized at fair value in the balance
sheet.  Changes in the fair value of a derivative instrument are
reported in net income or comprehensive income, depending upon the
intended use of the derivative instrument.

Upon adoption of SFAS 133, we recorded aftertax cumulative adjustments
to recognize the fair value of interest rate swap agreements related to
debt in the balance sheet, which reduced accumulated other
comprehensive income in shareholder's equity by $27.4 million.  Since
we anticipate holding the swaps for their full term, we do not expect
this amount to impact earnings in future periods.

Our interest rate swap agreements are designated and qualify as cash
flow hedges.  We report the effective portion of the gain or loss on
the instrument as a component of comprehensive income.  We report any
ineffectiveness in other revenues.

As an alternative to fixed-rate term debt, our interest rate swap
agreements did not have a material effect on other revenues, interest
expense, or net income during the nine months ended September 30, 2001
or 2000.
<PAGE> 8

Note 7.  Other Charges

In September 2001, we recorded one-time charges totaling $78.3 million
($50.9 million aftertax).  Included in one-time costs are charges
resulting from post-business combination plans.  These charges
recognize that certain assets will have no future economic benefit or
ability to generate future revenues.  These costs include asset
impairment charges relating to finance receivables, goodwill, and
customer base valuations resulting from a previous acquisition.  Also
included are certain adjustments associated with conforming the
Company's balances to AIG's existing accounting policies and
methodologies.

In June 2000, we discovered a potential fraud committed against a
subsidiary that conducts mortgage warehouse lending activities in our
consumer finance operation.  Mortgages processed by one originator
allegedly had been funded based on fraudulent information.  In July
2000, the originator's license was suspended and the originator and its
parent company filed for bankruptcy.  Based on the available
information, we recorded a charge of $50.0 million ($32.5 million
aftertax) in second quarter 2000 for our loss related to this alleged
fraud.  We are pursuing all appropriate remedies and believe our
recorded liability is sufficient to cover this loss.


Note 8.  Segment Information

We have two business segments: consumer finance and insurance.  Our
segments are defined by the type of financial service product offered.
The consumer finance operation makes home equity loans, originates
secured and unsecured consumer loans, extends lines of credit, and
purchases retail sales contracts from, and provides revolving retail
services for, retail merchants.  We also purchase private label
receivables originated by AIG Federal Savings Bank, an affiliate of
AGFI, under a participation agreement.  To supplement our lending and
retail sales financing activities, we purchase portfolios of real
estate loans, non-real estate loans, and retail sales finance
receivables.  We also sell credit and non-credit insurance to our
consumer finance customers.  The insurance operation writes and assumes
credit and non-credit insurance through products that are sold
principally by the consumer finance operation.

The following tables display information about the Company's segments
as well as a reconciliation of total segment pretax income to the
condensed consolidated financial statement amounts.

For the three months ended September 30, 2001:

                              Consumer                       Total
                              Finance      Insurance       Segments
                                     (dollars in thousands)
Revenues:
  External:
    Finance charges          $  451,589     $   -        $  451,589
    Insurance                       279       48,035         48,314
    Other                        (2,493)      21,983         19,490
  Intercompany                   19,698      (18,921)           777
Pretax income                    28,318       21,360         49,678
<PAGE> 9

For the three months ended September 30, 2000:

                              Consumer                       Total
                              Finance      Insurance       Segments
                                     (dollars in thousands)
Revenues:
  External:
    Finance charges          $  432,557     $   -        $  432,557
    Insurance                       224       49,454         49,678
    Other                          (703)      21,799         21,096
  Intercompany                   20,220      (19,447)           773
Pretax income                   101,027       21,216        122,243


For the nine months ended September 30, 2001:

                              Consumer                       Total
                              Finance      Insurance       Segments
                                     (dollars in thousands)
Revenues:
  External:
    Finance charges          $1,339,212     $   -        $1,339,212
    Insurance                       839      145,756        146,595
    Other                        (7,163)      69,536         62,373
  Intercompany                   60,148      (57,801)         2,347
Pretax income                   245,713       67,372        313,085


For the nine months ended September 30, 2000:

                              Consumer                       Total
                              Finance      Insurance       Segments
                                     (dollars in thousands)
Revenues:
  External:
    Finance charges          $1,256,621     $   -        $1,256,621
    Insurance                       834      145,763        146,597
    Other                          (797)      65,952         65,155
  Intercompany                   56,507      (54,159)         2,348
Pretax income                   240,795       64,601        305,396


Reconciliation of total segment pretax income to the condensed
consolidated financial statement amounts is summarized below:

                          Three Months Ended      Nine Months Ended
                             September 30,          September 30,
                          2001          2000      2001          2000
                                    (dollars in thousands)
Pretax income:
  Segments               $ 49,678    $122,243    $313,085    $305,396
  Corporate                (8,469)    (24,811)    (52,274)    (69,093)
  Adjustments              (3,687)     (1,219)    (11,991)     (3,346)

Total consolidated
  pretax income          $ 37,522    $ 96,213    $248,820    $232,957
<PAGE> 10

Note 9.  Legal Contingencies

Satellite Dish Litigation

In the mid-1990s, one of our subsidiaries, A.G. Financial Service
Center, Inc. (Financial Service Center), formerly named American
General Financial Center, provided financing for satellite dishes sold
by independent unaffiliated dealers.  On May 18, 1999, the Chancery
Court of the First Judicial District of Jones County, Mississippi in a
case captioned Clayton D. Smith, et al. v. Delta TV Corporation, Don
Acy, US Electronics, American General Financial Center, Civil Action
No. 96-0254 (the Clayton Smith matter), rendered a judgment awarding
approximately $500,000 in compensatory damages and $167 million in
punitive damages against Financial Service Center.  The lawsuit was
filed on November 15, 1996, by 29 individuals who had each purchased a
satellite dish.  Financial Service Center, together with certain other
American General companies, were also named as defendants in other
cases involving the financing of satellite dishes.

In August 1999, Financial Service Center filed a voluntary petition to
reorganize under Chapter 11 of the United States Bankruptcy Code with
the United States Bankruptcy Court for the Southern District of
Indiana.  The decision to reorganize was necessitated by the judgment
rendered against Financial Service Center by the Mississippi state
court.  The filing for reorganization under Chapter 11 was limited to
Financial Service Center and was intended to provide a fair and orderly
process for managing the claims against Financial Service Center.
Prior to the bankruptcy filing, Financial Service Center had assets of
approximately $7 million.

As part of the resolution process, settlement agreements were executed
in January 2000 to settle the Clayton Smith matter and certain other
claims.  Accordingly, we recorded a charge of $57.0 million ($36.2
million aftertax) in fourth quarter 1999 to cover the proposed
settlements and other litigation.  On September 1, 2000, payment was
made in connection with the final settlement of the Clayton Smith
matter.

In 2000, Financial Service Center filed a plan of reorganization to
resolve the remaining claims in the bankruptcy.  In January 2001,
Financial Service Center and the creditors' committee in the bankruptcy
entered into a settlement that has been approved by the bankruptcy
court.  The plan of reorganization was confirmed by the bankruptcy
court in February 2001 and distribution under the plan commenced.
Certain creditors have appealed the confirmation of the plan, but we do
not expect their appeal to prevail.  We expect our remaining recorded
liability related to this matter to be sufficient to cover the costs of
the plan of reorganization.


Other

AGFI and certain of its subsidiaries are also parties to various other
lawsuits and proceedings, including certain class action claims,
arising in the ordinary course of business.  In addition, many of these
proceedings are pending in jurisdictions that permit damage awards
disproportionate to the actual economic damages alleged to have been
incurred.  Based upon information presently available, we believe that
the total amounts that will ultimately be paid arising from these
lawsuits and proceedings will not have a material adverse effect on our
consolidated results of operations and financial position.  However,
the frequency of large damage awards, including large punitive damage
<PAGE> 11

awards that bear little or no relation to actual economic damages
incurred by plaintiffs in some jurisdictions, continues to create the
potential for an unpredictable judgment in any given suit.



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


                    LIQUIDITY AND CAPITAL RESOURCES

Liquidity

Our sources of funds include operations, issuances of long-term debt,
short-term borrowings in the commercial paper market, and borrowings
from banks under credit facilities.  American General has also
contributed capital to AGFI for finance receivable growth or other
circumstances.

The following table shows principal sources and uses of cash:

                                               Nine Months Ended
                                                 September 30,
                                              2001           2000
                                             (dollars in millions)
Principal sources of cash:

  Operations                                 $568.4         $365.5
  Net issuance of debt                           -           569.2

Principal sources of cash                    $568.4         $934.7


Principal uses of cash:

  Net originations and purchases
    of finance receivables                   $141.1         $795.9
  Net repayment of debt                       115.8             -
  Dividends paid                              178.3           42.7

Principal uses of cash                       $435.2         $838.6


We believe that our overall sources of liquidity will continue to be
sufficient to satisfy our foreseeable financial obligations and
operational requirements.
<PAGE> 12

Capital Resources
                                                September 30,
                                             2001           2000
                                            (dollars in millions)

Long-term debt                             $ 6,430.2     $ 5,760.4
Commercial paper                             4,187.0       4,963.1
Deposits                                          -           55.0

Total debt                                  10,617.2      10,778.5
Equity                                       1,532.2       1,630.6

Total capital                              $12,149.4     $12,409.1

Net finance receivables                    $11,618.6     $11,640.6
Debt to tangible equity ratio                  7.37x         7.46x


Our capital varies with the level of net finance receivables.  The
capital mix of debt and equity is based primarily upon maintaining
leverage that supports cost-effective funding.

We issue a combination of fixed-rate debt, principally long-term, and
floating-rate debt, principally short-term.  AGFC obtains our fixed-
rate debt through issuances of medium-term notes and underwritten debt
offerings with maturities generally ranging from two to ten years.
AGFI and AGFC obtain most of our floating-rate debt through sales of
commercial paper.  Commercial paper, with maturities ranging from 1 to
270 days, is sold directly to banks, insurance companies, corporations,
and other institutional investors.  AGFC also sells extendible
commercial notes with initial maturities of up to 90 days, which may be
extended by AGFC to 390 days.

AGFI has paid dividends to (or received capital contributions from)
American General to manage our leverage of debt to tangible equity
(equity less goodwill and accumulated other comprehensive income) to
7.50 to 1.  AGFI's ability to pay dividends is substantially dependent
on the receipt of dividends or other funds from its subsidiaries,
primarily AGFC.  An AGFC financing agreement limits the amount of
dividends AGFC may pay.  This agreement has not prevented us from
managing our capital to targeted leverage.


Liquidity Facilities

We participate in credit facilities to support the issuance of
commercial paper and to provide an additional source of funds for
operating requirements.  AGFI and AGFC are eligible borrowers under
committed credit facilities extended to American General and certain of
its subsidiaries (the "shared committed facilities").  At September
30, 2001, the annual commitment fees for the shared committed
facilities ranged from .04% to .06%.  We pay only an allocated portion
of the commitment fees for the shared committed facilities.  AGFI and
certain subsidiaries also have uncommitted credit facilities.  In
addition, AGFI and AGFC are eligible borrowers under uncommitted credit
facilities extended to American General and certain of its subsidiaries
(the "shared uncommitted facilities").  Available borrowings under
all facilities are reduced by any outstanding borrowings.
<PAGE> 13

Information concerning the credit facilities follows:

                                                September 30,
                                             2001          2000
                                            (dollars in millions)
Committed credit facilities:
  Shared committed facilities              $5,225.0      $6,200.0
  Borrowings                                     -             -

  Remaining availability                   $5,225.0      $6,200.0

Uncommitted credit facilities:
  Company uncommitted facilities           $  121.0      $  221.0
  Shared uncommitted facilities               100.0          50.0
  Borrowings                                     -          (60.0)

  Remaining availability                   $  221.0      $  211.0


In addition, our mortgage warehouse lending subsidiary arranges interim
financing for third-party mortgage originators through a purchase
facility.  At September 30, 2001, this facility totaled $250.0 million
with remaining availability of $95.0 million.

In July 2001, we refinanced $1.0 billion of short-term debt with the
issuance of $1.0 billion of long-term debt.  Subsequent to this
transaction, we reduced our committed credit facilities to reflect the
Company's lower commercial paper borrowings.


         ANALYSIS OF OPERATING RESULTS AND FINANCIAL CONDITION


Net Income
                           Three Months Ended      Nine Months Ended
                              September 30,          September 30,
                           2001          2000      2001          2000
                                      (dollars in millions)

Net income                $ 24.2        $ 61.1    $158.9        $147.3
Return on average
  assets (annualized)       .72%         1.83%     1.57%         1.51%
Return on average
  equity (annualized)      6.00%        15.17%    13.13%        12.46%
Ratio of earnings to
  fixed charges                                    1.49x         1.44x


Net income for the three and nine months ended September 30, 2001
included charges of $78.3 million ($50.9 million aftertax) resulting
from our review of our businesses and the assets supporting those
businesses, as well as the adoption of AIG's accounting policies and
methodologies, in connection with the acquisition of American General
by AIG.  See Note 7. of the Notes to Condensed Consolidated Financial
Statements for further information on these charges.

Net income for the nine months ended September 30, 2000 included a
charge of $50.0 million ($32.5 million aftertax) for the estimated loss
on an alleged fraud against our mortgage warehouse lending subsidiary
that was discovered in late June 2000.  See Note 7. of the Notes to
Condensed Consolidated Financial Statements for further information on
this loss.
<PAGE> 14

Excluding these non-recurring charges, net income for the three months
ended September 30, 2001 would have been $75.1 million, an increase of
$14.0 million, or 23%, over the same period in 2000.  Similarly, net
income would have been $209.8 million for the nine months ended
September 30, 2001 and $179.8 million for the nine months ended
September 30, 2000, an increase of $30.0 million, or 17%.  Including
these non-recurring charges, net income decreased $36.9 million, or
60%, for the three months ended September 30, 2001 and increased $11.6
million, or 8%, for the nine months ended September 30, 2001 when
compared to the same periods in 2000.  See Note 8. of the Notes to
Condensed Consolidated Financial Statements for information on the
results of the Company's business segments.

Factors that specifically affected the Company's operating results are
as follows:


Finance Charges
                           Three Months Ended      Nine Months Ended
                              September 30,          September 30,
                           2001          2000      2001          2000
                                      (dollars in millions)

Finance charges           $   432.0  $   414.1    $ 1,283.0  $ 1,202.9
Average net receivables   $11,740.4  $11,630.8    $11,755.4  $11,331.2
Yield                        14.63%     14.18%       14.58%     14.17%


Finance charges increased $17.9 million, or 4%, for the three months
ended September 30, 2001 and $80.1 million, or 7%, for the nine months
ended September 30, 2001 when compared to the same periods in 2000
primarily due to higher yield and average net receivables.

The following table shows average net receivables by type:

                           Three Months Ended      Nine Months Ended
                              September 30,          September 30,
                           2001          2000      2001          2000
                                      (dollars in millions)

Real estate loans         $ 7,368.2  $ 7,224.4    $ 7,379.6  $ 7,206.6
Non-real estate loans       2,954.9    2,986.0      2,963.7    2,741.0
Retail sales finance        1,417.3    1,420.4      1,412.1    1,383.6
  Total average net
    receivables           $11,740.4  $11,630.8    $11,755.4  $11,331.2


Average net receivables increased $109.6 million, or 1%, for the three
months ended September 30, 2001 and $424.2 million, or 4%, for the nine
months ended September 30, 2001 when compared to the same periods in
2000.

The following table shows yield by type of finance receivable:

                           Three Months Ended      Nine Months Ended
                              September 30,          September 30,
                           2001          2000      2001          2000

Real estate loans         11.85%        11.43%    11.86%        11.34%
Non-real estate loans     21.67         21.08     21.59         21.70
Retail sales finance      14.41         13.67     14.12         14.01
  Total yield             14.63         14.18     14.58         14.17
<PAGE> 15

Yield increased 45 basis points for the three months ended September
30, 2001 and 41 basis points for the nine months ended September 30,
2001 when compared to the same periods in 2000.  Real estate loan yield
increased due to higher yield on real estate loans originated, renewed,
and purchased during 2000 and the first half of 2001 in response to the
Federal Reserve's actions between June 1999 and May 2000 which
increased the federal funds rate by a total of 175 basis points.
Federal Reserve actions between December 2000 and September 2001
decreased the federal funds rate 350 basis points.  These lower market
rates may have an impact on future yields.


Insurance Revenues
                           Three Months Ended      Nine Months Ended
                              September 30,          September 30,
                           2001          2000      2001          2000
                                      (dollars in millions)

Insurance revenues        $ 48.3        $ 49.7    $146.6        $146.6
Premiums earned           $ 47.7        $ 49.0    $144.9        $144.4
Insurance revenues
  (annualized) as a
  percentage of
  average net
  receivables              1.65%         1.71%     1.66%         1.72%

Insurance revenues decreased $1.4 million, or 3%, for the three months
ended September 30, 2001 and was essentially unchanged for the nine
months ended September 30, 2001 when compared to the same periods in
2000.  The decrease in insurance revenues for the three months ended
September 30, 2001 was primarily due to lower premium volume.


Other Revenues
                           Three Months Ended      Nine Months Ended
                              September 30,          September 30,
                           2001          2000      2001          2000
                                      (dollars in millions)

Other revenues            $ 22.4        $ 22.5    $ 68.1        $ 73.2
Investment revenue        $ 20.4        $ 23.1    $ 64.6        $ 69.7


Other revenues were essentially unchanged for the three months ended
September 30, 2001 and decreased $5.1 million, or 7%, for the nine
months ended September 30, 2001 when compared to the same periods in
2000.  The decrease in other revenues for the nine months ended
September 30, 2001 was primarily due to lower investment revenue and
net losses on foreclosed real estate in 2001 compared to net gains in
2000.  The decrease in investment revenue for the nine months ended
September 30, 2001 when compared to the same period in 2000 reflected
net realized losses in 2001 compared to net realized gains in 2000 and
lower adjusted portfolio yield, partially offset by growth in average
invested assets.
<PAGE> 16

Interest Expense
                           Three Months Ended      Nine Months Ended
                              September 30,          September 30,
                           2001          2000      2001          2000
                                      (dollars in millions)

Interest expense          $   157.2  $   180.8    $   491.0  $   513.9
Average borrowings        $10,735.2  $10,776.2    $10,747.6  $10,456.8
Borrowing cost                5.84%      6.69%        6.09%      6.55%


Interest expense decreased $23.6 million, or 13%, for the three months
ended September 30, 2001 and $22.9 million, or 4% for the nine months
ended September 30, 2001 when compared to the same periods in 2000.
The decrease in interest expense for the three months ended September
30, 2001 was primarily due to lower borrowing cost.  The decrease in
interest expense for the nine months ended September 30, 2001 reflected
lower borrowing cost, partially offset by higher average borrowings.
Borrowing cost decreased 85 basis points for the three months ended
September 30, 2001 and 46 basis points for the nine months ended
September 30, 2001 when compared to the same periods in 2000 primarily
due to lower rates on short-term debt.  Federal Reserve actions raised
the federal funds rate a total of 175 basis points between June 1999
and May 2000 and then lowered rates a total of 350 basis points between
December 2000 and September 2001.  This resulted in large movements in
our short-term floating-rate borrowing cost.  Average borrowings
essentially remained the same for the three months ended September 30,
2001 and increased $290.8 million, or 3%, for the nine months ended
September 30, 2001 when compared to the same periods in 2000.  The
increase in average borrowings for the nine months ended September 30,
2001 was primarily to support higher average net receivables.


Operating Expenses
                           Three Months Ended      Nine Months Ended
                              September 30,          September 30,
                           2001          2000      2001          2000
                                      (dollars in millions)

Operating expenses        $142.0        $136.6    $420.0        $409.1
Operating expenses
  (annualized) as a
  percentage of
  average net
  receivables              4.84%         4.70%     4.76%         4.81%


Operating expenses increased $5.4 million, or 4%, for the three months
ended September 30, 2001 and $10.9 million, or 3%, for the nine months
ended September 30, 2001 when compared to the same periods in 2000
primarily due to higher salaries.  The improvement in operating
expenses as a percentage of average net receivables for the nine months
ended September 30, 2001 when compared to the same period in 2000
reflects improvement in operating efficiencies.
<PAGE> 17

Provision for Finance Receivable Losses
                                                     At or for the
                           Three Months Ended      Nine Months Ended
                              September 30,          September 30,
                           2001          2000      2001          2000
                                      (dollars in millions)

Provision for finance
  receivable losses       $ 66.3        $ 50.1    $194.0        $147.1
Net charge-offs           $ 66.3        $ 50.1    $189.0        $147.1
60 day+ delinquency                               $432.4        $406.2
Allowance for finance
  receivable losses                               $422.7        $383.4


Provision for finance receivable losses increased $16.2 million, or
32%, for the three months ended September 30, 2001 and $46.9 million,
or 32%, for the nine months ended September 30, 2001 when compared to
the same periods in 2000 primarily due to higher net charge-offs.

The following table shows charge-off ratios by type of finance
receivable:
                           Three Months Ended      Nine Months Ended
                              September 30,          September 30,
                           2001          2000      2001          2000

Real estate loans         0.67%          0.56%    0.65%          0.62%
Non-real estate loans     5.94           4.34     5.59           4.51
Retail sales finance      2.80           2.10     2.69           2.04
  Total charge-off ratio  2.25           1.72     2.14           1.73


The increase in the charge-off ratio for the three months and nine
months ended September 30, 2001 when compared to the same periods in
2000 was primarily due to higher net charge-offs on all finance
receivable types reflecting slowing economic conditions.

The following table shows delinquency ratios by type of finance
receivable:
                                          September 30,
                                       2001           2000

Real estate loans                     3.24%           3.27%
Non-real estate loans                 4.83            4.25
Retail sales finance                  2.33            1.76
  Total delinquency ratio             3.55            3.33


The increase in the delinquency ratio at September 30, 2001 when
compared to September 30, 2000 also reflected slowing economic
conditions.
<PAGE> 18

The following table shows selected statistics relating to the allowance
for finance receivable losses:
                                                     At or for the
                           Three Months Ended      Nine Months Ended
                              September 30,          September 30,
                           2001          2000      2001          2000

Allowance ratio                                   3.64%          3.29%
Charge-off coverage       1.59x          1.91x    1.68x          1.96x


We periodically evaluate our finance receivable portfolio to determine
the appropriate level of the allowance for finance receivable losses.
In our opinion, the allowance is adequate to absorb anticipated losses
in our existing portfolio.  The increase in the allowance as a
percentage of net finance receivables at September 30, 2001 when
compared to September 30, 2000 was primarily due to an addition to the
allowance for finance receivable losses through the other charges in
third quarter 2001 totaling $25.0 million.  Charge-off coverage, which
compares the allowance for finance receivable losses to net charge-offs
(annualized), declined for the three months and nine months ended
September 30, 2001 when compared to the same periods in 2000 primarily
due to higher net charge-offs.


Insurance Losses and Loss Adjustment Expenses

                           Three Months Ended      Nine Months Ended
                              September 30,          September 30,
                           2001          2000      2001          2000
                                      (dollars in millions)

Claims incurred           $ 22.3        $ 20.9    $ 66.5        $ 63.3
Change in benefit
  reserves                  (0.8)          1.7      (0.8)          6.3

Insurance losses and
  loss adjustment
  expenses                $ 21.5        $ 22.6    $ 65.7        $ 69.6


Insurance losses and loss adjustment expenses decreased $1.1 million,
or 5%, for the three months ended September 30, 2001 and $3.9 million,
or 6%, for the nine months ended September 30, 2001 when compared to
the same periods in 2000 due to decreases in provision for future
benefits, partially offset by increases in claims.  Provision for
future benefits decreased $2.5 million for the three months ended
September 30, 2001 and $7.1 million for the nine months ended September
30, 2001 due to decreased sales of non-credit insurance products.
Claims increased $1.4 million for the three months ended September 30,
2001 and $3.2 million for the nine months ended September 30, 2001
primarily due to increased loss experience.
<PAGE> 19

Other Charges

In third quarter 2001, we recorded charges of $78.3 million ($50.9
million aftertax) resulting from our review of our businesses and the
assets supporting those businesses, as well as the adoption of AIG's
accounting policies and methodologies, in connection with the
acquisition of American General by AIG.  See Note 7. of the Notes to
Condensed Consolidated Financial Statements for further information on
these charges.

In second quarter 2000, we recorded a charge of $50.0 million ($32.5
million aftertax) for the estimated loss on the alleged fraud against
our mortgage warehouse lending subsidiary that was discovered in late
June 2000.  We are pursuing all appropriate remedies and believe our
recorded liability is sufficient to cover this loss.  See Note 7. of
the Notes to Condensed Consolidated Financial Statements for further
information on this loss.


Provision for Income Taxes

                           Three Months Ended      Nine Months Ended
                              September 30,          September 30,
                           2001          2000      2001          2000
                                      (dollars in millions)

Provision for income
  taxes                   $ 13.4        $ 35.1    $ 89.9        $ 85.6
Pretax income             $ 37.5        $ 96.2    $248.8        $233.0
Effective income
  tax rate                35.59%        36.46%    36.12%        36.76%


The provision for income taxes decreased $21.7 million, or 62%, for the
three months ended September 30, 2001 and increased $4.3 million, or
5%, for the nine months ended September 30, 2001 when compared to the
same periods in 2000.  The decrease in provision for income taxes for
the three months ended September 30, 2001 was primarily due to lower
taxable income resulting from the other charges of $78.3 million in
third quarter 2001.  The increase in provision for income taxes for
the nine months ended September 30, 2001 reflected higher taxable
income.


Asset/Liability Management

We manage anticipated cash flows of our assets and liabilities in an
effort to reduce the risk associated with unfavorable changes in
interest rates.  Management determines the mix of fixed-rate and
floating-rate debt based, in part, on the nature of the assets being
supported.  We limit our exposure to market interest rate increases by
fixing interest rates that we pay for term periods.  The primary means
by which we accomplish this is through the issuance of fixed-rate debt.
To supplement fixed-rate debt issuances, AGFC also uses interest rate
swap agreements to synthetically create fixed-rate debt by altering the
nature of certain floating-rate funding, thereby limiting our exposure
to market interest rate increases.  Floating-rate debt represented 28%
of our average borrowings for the three months ended September 30, 2001
and 33% of our average borrowings for the nine months ended September
30, 2001 compared to 39% for the three months ended September 30, 2000
and 37% for the nine months ended September 30, 2000.  These
percentages include the effect of interest rate swap agreements that
converted floating-rate debt to a fixed rate.  The decrease in the
<PAGE> 20

percentage of floating-rate debt to average borrowings reflected the
issuance of $1.0 billion of fixed-rate, five-year medium-term notes on
July 16, 2001.  The proceeds were used to repay floating-rate
commercial paper.


                      FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q and other publicly available
documents may include, and the Company's officers and representatives
may from time to time make, statements which may constitute "forward-
looking statements" within the meaning of the Private Securities
Litigation Reform Act of 1995.  These statements are not historical
facts but instead represent only our belief regarding future events,
many of which, by their nature, are inherently uncertain and outside of
our control.  These statements may address, among other things, the
Company's strategy for growth, product development, regulatory
approvals, market position, financial results and reserves.  It is
possible that the Company's actual results and financial condition may
differ, possibly materially, from the anticipated results and financial
condition indicated in these forward-looking statements.  Important
factors that could cause our actual results to differ, possibly
materially, from those in the specific forward-looking statements are
discussed throughout this Management's Discussion and Analysis of
Financial Condition and Results of Operations.  We are not under any
obligation to (and expressly disclaim any such obligation to) update or
alter any forward-looking statement, whether written or oral, that may
be made from time to time, whether as a result of new information,
future events or otherwise.



                      PART II - OTHER INFORMATION


Item 1.  Legal Proceedings.

See Note 9. of the Notes to Condensed Consolidated Financial Statements
in Part I of this Form 10-Q.


Item 6.  Exhibits and Reports on Form 8-K.

(a)  Exhibits.

     (12)  Computation of Ratio of Earnings to Fixed Charges.

(b)  Reports on Form 8-K.

     No Current Reports on Form 8-K were filed during the third
     quarter of 2001.
<PAGE> 21

                              Signature


Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf
by the undersigned thereunto duly authorized.


                                 AMERICAN GENERAL FINANCE, INC.
                                          (Registrant)


Date:  November 13, 2001         By  /s/ Donald R. Breivogel, Jr.
                                         Donald R. Breivogel, Jr.
                                     Vice President and Chief
                                       Financial Officer
                                     (Duly Authorized Officer and
                                       Principal Financial Officer)
<PAGE> 22

                             Exhibit Index


Exhibit

 (12)      Computation of Ratio of Earnings to Fixed Charges.