**UNITED      STATES SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON,      D.C. 20549**

|   |                             |   |
|--------|----------------------------------|--------|
|   | **FORM                  10-K/A** |   |

**Amendment      No. 1 to Form 10-K **

**Mark      One)**

| **þ**** **                                                                                                                           | **Annual                Report Pursuant to Section 13 or 15(d) of the Securities Exchange                Act of                1934**     |
|------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                           |
| **For                the fiscal year ended December 31, 2005**                                                                                 |
| **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, Connecticut**                                             |                                   | **06927**                                                                      |   | **203/357-4000** |
| (Address                of principal executive offices)                                                   | (Zip                Code)              | (Registrant’s                telephone number,                           |
|                                                                                                      |                                   | including                area code)                                            |
|  **Securities                Registered Pursuant to Section 12(b) of the                Act: ** |
| **Title                of each class**                                                                    |                                   | **Name                of each exchange****on                which registered** |
|                                                                                                      |                                   |                                                                           |
| **7                ½% Guaranteed Subordinated Notes Due August 21,                2035**             |                                   | **New                York Stock Exchange**                                     |
|  **Securities                Registered Pursuant to Section 12(g) of the                Act:**       |
|                                                                                                      | **Title                of each class** |                                                                           |
| **Common                Stock, par value $1,000 per                share**                                |

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**DOCUMENTS      INCORPORATED BY REFERENCE**

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

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| **TABLE                OF CONTENTS** |
|--------------------------------------|
|                                 |
|                                 | Page |
|                                 |   |
| **Explanatory                Note**  | 3 |
|                                 |   |   |
| **PART                I**            |   |   |
|                                 |   |   |
| Item                1.               | Business | 6 |
| Item                1A.              | Risk                Factors | 10 |
| Item                1B.              | Unresolved                Staff Comments | 11 |
| Item                2.               | Properties | 11 |
| Item                3.               | Legal                Proceedings | 11 |
| Item                4.               | Submission                of Matters to a Vote of Security Holders | 12 |
|                                 |   |   |
| **PART                II**           |   |   |
|                                 |   |   |
| Item                5.               | Market                for the Registrant’s Common Equity and Related Stockholder Matters | 12 |
| Item                6.               | Selected                Financial Data | 12 |
| Item                7.               | Management’s                Discussion and Analysis of Financial Condition and Results of                Operations | 13 |
| Item                7A.              | Quantitative                and Qualitative Disclosures About Market Risk | 38 |
| Item                8.               | Financial                Statements and Supplementary Data | 39 |
| Item                9.               | Changes                in and Disagreements with Accountants on Accounting and Financial                Disclosure | 82 |
| Item                9A.              | Controls                and Procedures | 82 |
| Item                9B.              | Other                Information | 84 |
|                                 |   |   |
| **PART                III**          |   |   |
|                                 |   |   |
| Item                10.              | Directors                and Executive Officers of the Registrant | 85 |
| Item                11.              | Executive                Compensation | 85 |
| Item                12.              | Security                Ownership of Certain Beneficial Owners and Management and Related                Stockholder Matters | 85 |
| Item                13.              | Certain                Relationships and Related Transactions | 85 |
| Item                14.              | Principal                Accounting Fees and Services | 85 |
|                                 |   |   |
| **PART                IV**           |   |   |
|                                 |   |   |
| Item                15.              | Exhibits                and Financial Statement Schedules | 86 |
|                                 | Signatures  | 94 |

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**Explanatory      Note**

**Overview**

*Accounting      for Derivative Instruments and Hedging Activities*

| *(In                millions)*                                        | **Cumulative****January                1, 2001 -****December                31, 2005** |   |
|-----------------------------------------------------------------------|----------------------------------------------------------------------------------------|--------|
|                                                                  |                                                                                   |   |   |   |
| Decrease                in earnings from continuing operations before |                                                                                   |   |   |   |
| accounting                changes                                     | $                                                                                      | (473   | ) |   |
| Earnings                from continuing operations before accounting  |                                                                                   |   |   |   |
| changes                and error correction                           | $                                                                                      | 32,622 |   |   |

**Background**

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**Amendment      to this Form 10-K**

**Effects      of Restatement**

**Effects      on Statements of Earnings**

| *(Income                (expense); in millions)* | **Cumulative****through                12/31/05** |   | **2005** |   | **2004** |   | **2003** |   | **2002** |   | **2001** |   |
|--------------------------------------------------|---------------------------------------------------|--------|----------|--------|----------|--------|----------|--------|----------|--------|----------|--------|
|                                             |                                              |   |     |   |     |   |     |   |     |   |     |   |   |   |   |   |   |   |
| Commercial                paper interest rate    |                                              |   |     |   |     |   |     |   |     |   |     |   |   |   |   |   |   |   |
| swap                adjustment (note 1)(a)       | $                                                 | (800   | )        | $      | 540      |   | $        | 518    |     | $      | 535      |   | $ | (1,889 | ) | $ | (504 | ) |
| Interest                                         |                                              | 24     |     |   | 49       |   |     | 45     |     |   | 1        |   |   | (38 | ) |   | (33 | ) |
| Provision                for income taxes        |                                              | 303    |     |   | (231     | )      |     | (222   | )        |   | (211     | )      |   | 758 |   |   | 209 |   |
| Earnings                from continuing          |                                              |   |     |   |     |   |     |   |     |   |     |   |   |   |   |   |   |   |
| operations                before                 |                                              |   |     |   |     |   |     |   |     |   |     |   |   |   |   |   |   |   |
| accounting                changes                |                                              | (473   | )        |   | 358      |   |     | 341    |     |   | 325      |   |   | (1,169 | ) |   | (328 | ) |
| Net                earnings                      | $                                                 | (473   | )        | $      | 358      |   | $        | 341    |     | $      | 325      |   | $ | (1,169 | ) | $ | (328 | ) |
|                                             |                                              |   |     |   |     |   |     |   |     |   |     |   |   |   |   |   |   |   |

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

|                                            | **2005**  |   |
|-------------------------------------------------|-----------|--------|
| *(Income                (expense);in millions)* | **Total** |   | **First                quarter** |   | **Second                quarter** |   | **Third                quarter** |   | **Fourth                quarter** |   |
|                                            |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial                paper interest        |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| rate                swap adjustment (note 1)(a) | $         | 540    |   | $ | 358 |   | $ | (239 | ) | $ | 271 |   | $ | 150 |   |
| Interest                                        |      | 49     |   |   | 12 |   |   | 11 |   |   | 13 |   |   | 13 |   |
| Provision                for income taxes       |      | (231   | ) |   | (145 | ) |   | 89 |   |   | (111 | ) |   | (64 | ) |
| Net                earnings                     | $         | 358    |   | $ | 225 |   | $ | (139 | ) | $ | 173 |   | $ | 99 |   |
|                                            |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

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

----

|                                            | **2004**  |   |
|-------------------------------------------------|-----------|--------|
| *(Income                (expense);in millions)* | **Total** |   | **First                quarter** |   | **Second                quarter** |   | **Third                quarter** |   | **Fourth                quarter** |   |
|                                            |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial                paper interest        |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| rate                swap adjustment (note 1)(a) | $         | 518    |   | $ | (233 | ) | $ | 970 |   | $ | (381 | ) | $ | 162 |   |
| Interest                                        |      | 45     |   |   | 10 |   |   | 10 |   |   | 13 |   |   | 12 |   |
| Provision                for income taxes       |      | (222   | ) |   | 87 |   |   | (384 | ) |   | 144 |   |   | (69 | ) |
| Net                earnings                     | $         | 341    |   | $ | (136 | ) | $ | 596 |   | $ | (224 | ) | $ | 105 |   |
|                                            |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

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

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**PART      I**

**Item      1. Business.**

**General      Electric Capital Services, Inc.**

**General      Electric Capital Corporation**

**Operating      Segments**

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**GE      Commercial Finance**

*Capital      Solutions*

*Real      Estate*

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**GE      Consumer Finance**

**GE      Industrial**

*Equipment      Services*

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**GE      Infrastructure**

*Aviation      Financial Services*

*Energy      Financial Services*

**Discontinued      Operations**

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**Regulations      and Competition**

**Business      and Economic Conditions**

**Forward-Looking      Statements**

**Item      1A. **
**Risk      Factors.**

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**Our      global growth is subject to a number of economic, political and regulatory      risks**

**Our      credit ratings are important to our cost of capital**

**The      disposition of businesses that do not fit with our evolving strategy can be      highly uncertain**

**Item      1B. Unresolved Staff Comments.**

**Item      2. Properties.**

**Item      3. Legal Proceedings.**

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**Item      4. Submission of Matters to a Vote of Security Holders.**

**PART      II**

**Item      5. Market for the Registrant’s Common Equity and Related Stockholder      Matters.**

**Item      6. Selected Financial Data. **

| *(In                millions)*                                | **2005** |    | **2004** |   | **2003** |   | **2002** |    | **2001** |   |
|---------------------------------------------------------------|----------|---------|----------|--------|----------|--------|----------|---------|----------|--------|
|                                                          |     |    |     |   |     |   |     |    |     |   |   |   |   |   |   |
| Revenues                                                      | $        | 59,297  |     | $      | 52,894   |   | $        | 42,978  |     | $      | 40,345 |   | $ | 39,998 |   |
| Earnings                from continuing operations            |     |    |     |   |     |   |     |    |     |   |   |   |   |   |   |
| before                accounting changes                      |     | 9,141   |     |   | 7,853    |   |     | 5,931   |     |   | 5,291 |   |   | 4,406 |   |
| Earnings                (loss) from discontinued operations,  |     |    |     |   |     |   |     |    |     |   |   |   |   |   |   |
| net                of taxes                                   |     | (1,922  | )        |   | 534      |   |     | 2,057   |     |   | (616 | ) |   | 1,130 |   |
| Earnings                before accounting changes             |     | 7,219   |     |   | 8,387    |   |     | 7,988   |     |   | 4,675 |   |   | 5,536 |   |
| Cumulative                effect of accounting changes        |     | -       |     |   | -        |   |     | (339    | )        |   | (1,015 | ) |   | (12 | ) |
| Net                earnings                                   |     | 7,219   |     |   | 8,387    |   |     | 7,649   |     |   | 3,660 |   |   | 5,524 |   |
| Shareowner’s                equity                      |     | 50,815  |     |   | 54,292   |   |     | 45,759  |     |   | 37,302 |   |   | 28,766 |   |
| Minority                interest                              |     | 2,248   |     |   | 4,902    |   |     | 5,115   |     |   | 4,445 |   |   | 4,267 |   |
| Short-term                borrowings                          |     | 157,672 |     |   | 154,292  |   |     | 153,748 |     |   | 128,240 |   |   | 159,346 |   |
| Long-term                borrowings                           |     | 204,397 |     |   | 201,209  |   |     | 162,845 |     |   | 138,774 |   |   | 77,103 |   |
| Return                on average shareowner’s equity(a) |     | 19.66   | %        |   | 17.09    | %      |     | 14.45   | %        |   | 17.49 | % |   | 17.86 | % |
| GECS                ratio of earnings to fixed charges        |     | 1.70    |     |   | 1.83     |   |     | 1.68    |     |   | 1.61 |   |   | 1.51 |   |
| GECC                ratio of debt to equity                   |     | 7.09:1  |     |   | 6.46:1   |   |     | 6.63:1  |     |   | 6.46:1 |   |   | 7.21:1 |   |
| Financing                receivables - net                    | $        | 287,639 |     | $      | 282,699  |   | $        | 248,114 |     | $      | 198,060 |   | $ | 172,346 |   |
| Total                assets of continuing operations          |     | 493,849 |     |   | 486,238  |   |     | 410,653 |     |   | 356,352 |   |   | 304,011 |   |
| Total                assets                                   |     | 540,605 |     |   | 618,504  |   |     | 554,871 |     |   | 489,820 |   |   | 425,473 |   |
|                                                          |     |    |     |   |     |   |     |    |     |   |   |   |   |   |   |

| (a) | Represents                earnings from continuing operations before accounting changes divided                by                average total shareowner’s equity, excluding effects of discontinued                operations (on an annual basis, calculated using a five-point average).                Average total shareowner’s equity, excluding effects of discontinued                operations, as of the end of each of the years in the five-year period                ended December 31, 2005, is described in the Supplemental Information                section. |   |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|

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| *(In                millions)*                                | **2005****(Restated)** |    | **2004****(Restated)** |   | **2003****(Restated)** |   | **2002****(Restated)** |    | **2001****(Restated)** |   |
|---------------------------------------------------------------|------------------------|---------|------------------------|--------|------------------------|--------|------------------------|---------|------------------------|--------|
|                                                          |                   |    |                   |   |                   |   |                   |    |                   |   |   |   |   |   |   |
| Revenues                                                      | $                      | 59,837  |                   | $      | 53,412                 |   | $                      | 43,513  |                   | $      | 38,456 |   | $ | 39,494 |   |
| Earnings                from continuing operations            |                   |    |                   |   |                   |   |                   |    |                   |   |   |   |   |   |   |
| before                accounting changes                      |                   | 9,499   |                   |   | 8,194                  |   |                   | 6,256   |                   |   | 4,122 |   |   | 4,078 |   |
| Earnings                (loss) from discontinued operations,  |                   |    |                   |   |                   |   |                   |    |                   |   |   |   |   |   |   |
| net                of taxes                                   |                   | (1,922  | )                      |   | 534                    |   |                   | 2,057   |                   |   | (616 | ) |   | 1,130 |   |
| Earnings                before accounting changes             |                   | 7,577   |                   |   | 8,728                  |   |                   | 8,313   |                   |   | 3,506 |   |   | 5,208 |   |
| Cumulative                effect of accounting changes        |                   | -       |                   |   | -                      |   |                   | (339    | )                      |   | (1,015 | ) |   | (12 | ) |
| Net                earnings                                   |                   | 7,577   |                   |   | 8,728                  |   |                   | 7,974   |                   |   | 2,491 |   |   | 5,196 |   |
| Shareowner’s                equity                      |                   | 50,812  |                   |   | 54,379                 |   |                   | 45,790  |                   |   | 37,202 |   |   | 28,785 |   |
| Return                on average shareowner’s equity(a) |                   | 17.52   | %                      |   | 16.73                  | %      |                   | 14.90   | %                      |   | 13.20 | % |   | 14.37 | % |
| GECS                ratio of earnings to fixed charges        |                   | 1.74    |                   |   | 1.88                   |   |                   | 1.74    |                   |   | 1.42 |   |   | 1.46 |   |
| GECC                ratio of debt to equity                   |                   | 7.09:1  |                   |   | 6.45:1                 |   |                   | 6.62:1  |                   |   | 6.48:1 |   |   | 7.20:1 |   |
| Total                assets of continuing operations          |                   | 493,828 |                   |   | 486,348                |   |                   | 410,659 |                   |   | 356,134 |   |   | 304,031 |   |
| Total                assets                                   |                   | 540,584 |                   |   | 618,614                |   |                   | 554,877 |                   |   | 489,602 |   |   | 425,493 |   |
|                                                          |                   |    |                   |   |                   |   |                   |    |                   |   |   |   |   |   |   |

| (a) | Represents                earnings from continuing operations before accounting changes divided                by                average total shareowner’s equity, excluding effects of discontinued                operations (on an annual basis, calculated using a five-point average).                Average total shareowner’s equity, excluding effects of discontinued                operations, as of the end of each of the years in the five-year period                ended December 31, 2005, is described in the Supplemental Information                section. |   |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|

**Item      7. Management’s Discussion and Analysis of Financial Condition and Results of      Operations.**

**2007      Restatement**

*Accounting      for Derivative Instruments and Hedging Activities*

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|                                                        | **Increase                (decrease) in earnings from continuing operations before accounting                changes** |   |
|-------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------|--------|
| *(In                millions)*                              | **2005**                                                                                                               |   | **2004** |   | **2003** |   | **2002** |   | **2001** |   |
|                                                        |                                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                adjustment                             | $                                                                                                                      | 358    |   | $ | 341 |   | $ | 325 |   | $ | (1,169 | ) | $ | (328 | ) |
|                                                        |                                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Previously                reported earnings from continuing |                                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| operations                before accounting changes         | $                                                                                                                      | 9,141  |   | $ | 7,853 |   | $ | 5,931 |   | $ | 5,291 |   | $ | 4,406 |   |
| Percent                variation from previously reported   |                                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| earnings                from continuing operations          |                                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| before                accounting changes                    |                                                                                                                   | 3.9    | % |   | 4.3 | % |   | 5.5 | % |   | (22.1 | )% |   | (7.4 | )% |

| *(In                millions)*          | **Increase                (decrease) in earnings from continuing operations****(a)** |   |
|-----------------------------------------|--------------------------------------------------------------------------------------|--------|
|                                    | **2005**                                                                             |   | **2004** |   |
| **Quarter**                             | **4****th****Qtr.**                                                                  |   | **3****rd****Qtr.** |   | **2****nd****Qtr.** |   | **1****st****Qtr.** |   | **4****th****Qtr.** |   | **3****rd****Qtr.** |   | **2****nd****Qtr.** |   | **1****st****Qtr.** |   |
|                                    |                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                adjustment         | $                                                                                    | 99     |   | $ | 173 |   | $ | (139 | ) | $ | 225 |   | $ | 105 |   | $ | (224 | ) | $ | 596 |   | $ | (136 | ) |
|                                    |                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Previously                reported      |                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| earnings                from continuing |                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| operations                              | $                                                                                    | 2,675  |   | $ | 2,577 |   | $ | 2,024 |   | $ | 1,865 |   | $ | 2,727 |   | $ | 2,123 |   | $ | 1,431 |   | $ | 1,572 |   |
| Percent                variation from   |                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| previously                reported      |                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| earnings                from continuing |                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| operations                              |                                                                                 | 3.7    | % |   | 6.7 | % |   | (6.9 | )% |   | 12.1 | % |   | 3.9 | % |   | (10.6 | )% |   | 41.6 | % |   | (8.7 | )% |
|                                    |

|  (a)                See also note 21 to the Notes to Consolidated Financial Statements                -                Quarterly Information (Unaudited), as                restated. |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

Changes      to our previously reported earnings detailed above reflect the volatility      resulting from recognizing changes in the fair value of our commercial paper      interest rate swaps immediately in earnings, rather than recording them in      earnings over the remaining term of the hedging relationship. Values of these      swaps move directly with changes in interest rates: increases in interest rates      produce positive earnings effects from fair value gains on the interest rate      swaps, as the amount of cash we receive on the swaps’ variable cash flow stream      increases versus its fixed payment stream; similarly, negative earnings effects      result from fair value losses on the swaps associated with decreases in interest      rates as the amount of cash received on the swaps’ variable cash flow stream      decreases versus its fixed payment stream. Interest rates generally trended      downward during the period from 2001 to the present, explaining the slightly      negative effect on earnings from this accounting error correction. However,      interest rates were volatile within the years - for example increasing sharply      second quarter of 2004 and first quarter of 2005, resulting in more pronounced      positive earnings effects in those periods. As these swaps are used in match      funding arrangements, which protect against the economic exposure to changes      in      interest rates, there are offsetting fair value changes associated with the      related fixed rate assets. Because fair value changes related to fixed rate      assets are not recognized in earnings under the current accounting model, the      elimination of hedge accounting through correction of the error presents the      current earnings effects of only one of two equal and offsetting components      of      the economic relationship. 

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**Operations**

**Overview      of Our Earnings from 2003 through 2005**

**Insurance      Exit. **

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| • | On                November 18, 2005, GE announced that it had entered into an agreement                with                Swiss Reinsurance Company (Swiss Re) to sell the property and casualty                insurance and reinsurance businesses and the European life and health                operations of GE Insurance Solutions Corporation (GE Insurance Solutions).                The transaction is expected to close in the second quarter of 2006,                subject to regulatory approvals and customary closing conditions. |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | In                May 2004, we completed the initial public offering of Genworth Financial,                Inc. (Genworth), our formerly wholly-owned subsidiary that conducted                most                of our consumer insurance business, including life and mortgage insurance                operations. Throughout 2005, we continued to reduce our ownership                in                Genworth, currently at 18%. We intend to continue to dispose of our                remaining shares in 2006, subject to market conditions. |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Restated      interest on borrowings**

**Restated      income taxes. **

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**Global      Risk Management**

| **•** | Liquidity                risk is the risk of being unable to accommodate liability maturities,                fund                asset growth and meet contractual obligations through access to funding                at                reasonable market rates. Additional information about our liquidity                and                how we manage this risk can be found in the Financial Resources and                Liquidity section and in notes 11 and                18. |
|-------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **•** | Credit                risk is the risk of financial loss arising from a customer or counterparty                failure to meet its contractual obligations. We face credit risk                in our                lending and leasing activities (see the Financial Resources and Liquidity                and Critical Accounting Estimates sections and notes 1, 6, 7 and                20) and                derivative financial instruments activities (see note 18). |
|-------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **•** | Market                risk is the potential loss in value of investment and other asset                and                liability portfolios, including financial instruments, caused by                changes                in market variables, such as interest and currency exchange rates |
|-------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | and                equity and commodity prices. We are exposed to market risk in the                normal                course of our business operations as a result of our ongoing investing                and                funding activities. We attempt to mitigate the risks to our various                portfolios arising from changes in interest and currency exchange                rates in                a variety of ways that often include offsetting positions in local                currencies or selective use of derivatives. Additional information                about                how we mitigate the risks to our various portfolios from changes                in                interest and currency exchange rates can be found in the Financial                Resources and Liquidity section and in note                18. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **•** | Event                risk is that body of risk beyond liquidity, credit and market risk.                Event                risk includes the possibility of adverse occurrences both within                and                beyond our control. Examples of event risk include natural disasters,                availability of necessary materials, guarantees of product performance                and                business interruption. This type of risk is often insurable, and                success                in managing this risk is ultimately determined by the balance between                the                level of risk retained or assumed and the cost of transferring the                risk to                others. The decision as to the appropriate level of event risk to                retain                or cede is evaluated in the framework of business decisions. Additional                information about certain event risk can be found in note                20.  |
|-------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Segment      Operations**

----

**Summary      of Operating Segments**

| *(In                millions)*                                                    | **2005****(Restated)** |    | **2004****(Restated)** |   | **2003****(Restated)** |   |
|-----------------------------------------------------------------------------------|------------------------|---------|------------------------|--------|------------------------|--------|
|                                                                              |                   |    |                   |   |                   |   |
| **Revenues**                                                                      |                   |    |                   |   |                   |   |   |   |   |
| GE                Commercial Finance                                              | $                      | 20,646  |                   | $      | 19,524                 |   | $ | 16,927 |   |
| GE                Consumer Finance                                                |                   | 19,416  |                   |   | 15,734                 |   |   | 12,845 |   |
| GE                Industrial                                                      |                   | 32,631  |                   |   | 30,722                 |   |   | 24,988 |   |
| GE                Infrastructure                                                  |                   | 41,803  |                   |   | 37,373                 |   |   | 36,569 |   |
| Total                segment revenues                                             |                   | 114,496 |                   |   | 103,353                |   |   | 91,329 |   |
| GECS                corporate items and eliminations, as restated(a)              |                   | 8,104   |                   |   | 7,278                  |   |   | 6,593 |   |
| Total                revenues                                                     |                   | 122,600 |                   |   | 110,631                |   |   | 97,922 |   |
| Less                portion of GE revenues not included in GECS                   |                   | (62,763 | )                      |   | (57,219                | )      |   | (54,409 | ) |
| Total                revenues in GECS                                             | $                      | 59,837  |                   | $      | 53,412                 |   | $ | 43,513 |   |
|                                                                              |                   |    |                   |   |                   |   |   |   |   |
| **Segment                profit**                                                 |                   |    |                   |   |                   |   |   |   |   |
| GE                Commercial Finance                                              | $                      | 4,290   |                   | $      | 3,570                  |   | $ | 2,907 |   |
| GE                Consumer Finance                                                |                   | 3,050   |                   |   | 2,520                  |   |   | 2,161 |   |
| GE                Industrial                                                      |                   | 2,559   |                   |   | 1,833                  |   |   | 1,385 |   |
| GE                Infrastructure                                                  |                   | 7,769   |                   |   | 6,797                  |   |   | 7,362 |   |
| Total                segment profit                                               |                   | 17,668  |                   |   | 14,720                 |   |   | 13,815 |   |
| GECS                corporate items and eliminations, as restated                 |                   | 487     |                   |   | 1,047                  |   |   | 442 |   |
| Less                portion of GE segment profit not included in GECS             |                   | (8,656  | )                      |   | (7,573                 | )      |   | (8,001 | ) |
| Earnings                in GECS from continuing operations before                 |                   |    |                   |   |                   |   |   |   |   |
| accounting                change                                                  |                   | 9,499   |                   |   | 8,194                  |   |   | 6,256 |   |
| Earnings                (loss) in GECS from discontinued operations, net of taxes |                   | (1,922  | )                      |   | 534                    |   |   | 2,057 |   |
| Earnings                in GECS before accounting change                          |                   | 7,577   |                   |   | 8,728                  |   |   | 8,313 |   |
| Cumulative                effect of accounting change                             |                   | -       |                   |   | -                      |   |   | (339 | ) |
| Total                net earnings in GECS                                         | $                      | 7,577   |                   | $      | 8,728                  |   | $ | 7,974 |   |
|                                                                              |                   |    |                   |   |                   |   |   |   |   |

| (a)  | Primarily                revenues associated with our insurance activities remaining in continuing                operations that were previously reported in the GE Commercial Finance                segment.  |   |
|-----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|

----

**GE      Commercial Finance**

| *(In                millions)*    | **2005** |   | **2004** |   | **2003** |   |
|-----------------------------------|----------|--------|----------|--------|----------|--------|
|                              |     |   |     |   |     |   |   |   |   |
| **Revenues**                      | $        | 20,646 |     | $      | 19,524   |   | $ | 16,927 |   |
|                              |     |   |     |   |     |   |   |   |   |
| **Segment                profit** | $        | 4,290  |     | $      | 3,570    |   | $ | 2,907 |   |

| *December                31 (In millions)* | **2005** |    | **2004** |   |    |   |
|--------------------------------------------|----------|---------|----------|--------|---------|--------|
|                                       |     |    |     |   |    |   |   |   |   |
| **Total                assets**            | $        | 190,546 |     | $      | 184,388 |   |   |   |   |

| *(In                millions)*             | **2005** |   | **2004** |   | **2003** |   |
|--------------------------------------------|----------|--------|----------|--------|----------|--------|
|                                       |     |   |     |   |     |   |   |   |   |
| **Revenues                in GE**          |     |   |     |   |     |   |   |   |   |
| Capital                Solutions           | $        | 11,476 |     | $      | 11,503   |   | $ | 9,893 |   |
| Real                Estate                 |     | 3,492  |     |   | 3,084    |   |   | 2,956 |   |
|                                       |     |   |     |   |     |   |   |   |   |
| **Segment                profit in GE**    |     |   |     |   |     |   |   |   |   |
| Capital                Solutions           | $        | 1,515  |     | $      | 1,325    |   | $ | 1,184 |   |
| Real                Estate                 |     | 1,282  |     |   | 1,124    |   |   | 947 |   |
|                                       |     |   |     |   |     |   |   |   |   |
| *December                31 (In millions)* | **2005** |   | **2004** |   |     |   |   |
|                                       |     |   |     |   |     |   |   |   |   |
| **Assets                in GE**            |     |   |     |   |     |   |   |   |   |
| Capital                Solutions           | $        | 87,306 |     | $      | 80,514   |   |   |   |   |
| Real                Estate                 |     | 35,323 |     |   | 39,515   |   |   |   |   |

**GE      Consumer Finance**

| *(In                millions)*                                   | **2005** |    | **2004** |   | **2003** |   |
|------------------------------------------------------------------|----------|---------|----------|--------|----------|--------|
|                                                             |     |    |     |   |     |   |   |   |   |
| **Revenues**                                                     | $        | 19,416  |     | $      | 15,734   |   | $ | 12,845 |   |
|                                                             |     |    |     |   |     |   |   |   |   |
| **Segment                profit**                                | $        | 3,050   |     | $      | 2,520    |   | $ | 2,161 |   |
|                                                             |     |    |     |   |     |   |   |   |   |
| *December                31* *(In                millions)* | **2005** |    | **2004** |   |     |   |   |
|                                                             |     |    |     |   |     |   |   |   |   |
| **Total                assets**                                  | $        | 158,829 |     | $      | 151,255  |   |   |   |   |

----

**GE      Industrial**

| *(In                millions)*                                    | **2005** |    | **2004** |   | **2003** |   |
|-------------------------------------------------------------------|----------|---------|----------|--------|----------|--------|
|                                                              |     |    |     |   |     |   |   |   |   |
| **Revenues**                                                      | $        | 32,631  |     | $      | 30,722   |   | $ | 24,988 |   |
| Less                portion of GE Industrial not included in GECS |     | (26,004 | )        |   | (24,151  | )      |   | (21,631 | ) |
| Total                revenues in GECS                             | $        | 6,627   |     | $      | 6,571    |   | $ | 3,357 |   |
|                                                              |     |    |     |   |     |   |   |   |   |
| **Segment                profit**                                 | $        | 2,559   |     | $      | 1,833    |   | $ | 1,385 |   |
| Less                portion of GE Industrial not included in GECS |     | (2,362  | )        |   | (1,751   | )      |   | (1,461 | ) |
| Total                segment profit in GECS                       | $        | 197     |     | $      | 82       |   | $ | (76 | ) |
|                                                              |     |    |     |   |     |   |   |   |   |
| **Revenues                in GE**                                 |     |    |     |   |     |   |   |   |   |
| Consumer                & Industrial                          | $        | 14,092  |     | $      | 13,767   |   | $ | 12,843 |   |
| Equipment                Services                                 |     | 6,627   |     |   | 6,571    |   |   | 3,357 |   |
| Plastics                                                          |     | 6,606   |     |   | 6,066    |   |   | 5,501 |   |
|                                                              |     |    |     |   |     |   |   |   |   |
| **Segment                profit in GE**                           |     |    |     |   |     |   |   |   |   |
| Consumer                & Industrial                          | $        | 871     |     | $      | 716      |   | $ | 577 |   |
| Equipment                Services                                 |     | 197     |     |   | 82       |   |   | (76 | ) |
| Plastics                                                          |     | 867     |     |   | 566      |   |   | 503 |   |

----

**GE      Infrastructure**

| *(In                millions)*                                        | **2005** |    | **2004** |   | **2003** |   |
|-----------------------------------------------------------------------|----------|---------|----------|--------|----------|--------|
|                                                                  |     |    |     |   |     |   |   |   |   |
| **Revenues**                                                          | $        | 41,803  |     | $      | 37,373   |   | $ | 36,569 |   |
| Less                portion of GE Infrastructure not included in GECS |     | (36,759 | )        |   | (33,068  | )      |   | (32,778 | ) |
| Total                revenues in GECS                                 | $        | 5,044   |     | $      | 4,305    |   | $ | 3,791 |   |
|                                                                  |     |    |     |   |     |   |   |   |   |
| **Segment                profit**                                     | $        | 7,769   |     | $      | 6,797    |   | $ | 7,362 |   |
| Less                portion of GE Infrastructure not included in GECS |     | (6,294  | )        |   | (5,822   | )      |   | (6,540 | ) |
| Total                segment profit in GECS                           | $        | 1,475   |     | $      | 975      |   | $ | 822 |   |
|                                                                  |     |    |     |   |     |   |   |   |   |
| **Revenues                in GE**                                     |     |    |     |   |     |   |   |   |   |
| Aviation                                                              | $        | 11,904  |     | $      | 11,094   |   | $ | 9,808 |   |
| Aviation                Financial Services                            |     | 3,504   |     |   | 3,159    |   |   | 2,881 |   |
| Energy                                                                |     | 16,525  |     |   | 14,586   |   |   | 16,611 |   |
| Energy                Financial Services                              |     | 1,349   |     |   | 972      |   |   | 805 |   |
| Oil                & Gas                                          |     | 3,598   |     |   | 3,135    |   |   | 2,842 |   |
| Transportation                                                        |     | 3,577   |     |   | 3,007    |   |   | 2,543 |   |
|                                                                  |     |    |     |   |     |   |   |   |   |
| **Segment                profit in GE**                               |     |    |     |   |     |   |   |   |   |
| Aviation                                                              | $        | 2,573   |     | $      | 2,238    |   | $ | 1,809 |   |
| Aviation                Financial Services                            |     | 764     |     |   | 520      |   |   | 506 |   |
| Energy                                                                |     | 2,665   |     |   | 2,543    |   |   | 3,875 |   |
| Energy                Financial Services                              |     | 646     |     |   | 376      |   |   | 280 |   |
| Oil                & Gas                                          |     | 411     |     |   | 331      |   |   | 264 |   |
| Transportation                                                        |     | 524     |     |   | 516      |   |   | 450 |   |

----

**Discontinued      Insurance Operations **

| *(In                millions)*                                                    | **2005** |   | **2004** |   | **2003** |   |
|-----------------------------------------------------------------------------------|----------|--------|----------|--------|----------|--------|
|                                                                              |     |   |     |   |     |   |   |   |   |
| Earnings                (loss) in GECS from discontinued operations, net of taxes | $        | (1,922 | )        | $      | 534      |   | $ | 2,057 |   |

----

**Global      Operations**

**Financial      Resources and Liquidity**

----

**Overview      of Financial Position**

| • | In                the fourth quarter of 2005, GE announced the planned sale of most                of GE                Insurance Solutions and completed a Genworth secondary public offering,                which reduced our ownership in Genworth from 27% to 18%. We have                separately reported the assets and liabilities related to these                discontinued operations for all periods                presented. |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | Our                discontinued operations assets and liabilities decreased by $83.4                billion                on September 27, 2005, when we reduced our ownership of Genworth                to 27%, a                level of investment that is reported as an associated company. As                an                associated company, our ongoing interest in Genworth operating results                were presented on a one-line basis. This deconsolidation had a significant                effect on our assets and liabilities of discontinued operations. |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | During                2005, we completed acquisitions of the Transportation Financial Services                Group of CitiCapital, the Inventory Finance division of Bombardier                Capital, Antares Capital Corp., a unit of Massachusetts Mutual Life                Insurance Co., and ING’s portion of Heller                AG. |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | The                U.S. dollar was stronger at December 31, 2005, than it was at December                31,                2004, reducing the translated levels of our non-U.S. dollar assets                and                liabilities. However, on average, the U.S. dollar in 2005 has been                weaker                than during the comparable 2004 period, resulting in increases in                reported                levels of non-U.S. dollar operations as noted in the preceding Operations                section. |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | Minority                interest in equity of consolidated affiliates decreased $2.7 billion                during 2005 principally from the redemption of preferred stock at                GECC                ($2.5 billion). See note 14. |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Statement      of Financial Position**

**Investment      securities**

----

**Financing      receivables **

----

| *December                31*         | **2005** |   | **2004** |   | **2003** |   |
|--------------------------------------|----------|--------|----------|--------|----------|--------|
|                                 |     |   |     |   |     |   |   |   |   |
| GE                Commercial Finance |     | 1.31   | %        |   | 1.40     | %      |   | 1.38 | % |
| GE                Consumer Finance   |     | 5.08   |     |   | 4.85     |   |   | 5.62 |   |

**Other      receivables**

**Buildings      and equipment**

**Borrowings**

----

**Exchange      rate and interest rate risks **

| • | It                is our policy to minimize exposure to interest rate changes. We fund                our                financial investments using debt or a combination of debt and hedging                instruments so that the interest rates and terms of our borrowings                match                the expected yields and terms on our assets. To test the effectiveness                of                our positions, we assumed that, on January 1, 2006, interest rates                increased by 100 basis points across the yield curve (a “parallel shift”                in that curve) and further assumed that the increase remained in                place for                2006. We estimated, based on that year-end 2005 portfolio and holding                everything else constant, that our 2006 net earnings would decline                by $0.2                billion. |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | It                is our policy to minimize currency exposures and to conduct operations                either within functional currencies or using the protection of hedge                strategies. We analyzed year-end 2005 consolidated currency exposures,                including derivatives designated and effective as hedges, to identify                assets and liabilities denominated in other than their relevant functional                currencies. For such assets and liabilities, we then evaluated the                effects                of a 10% shift in exchange rates between those currencies and the                U.S.                dollar. This analysis indicated that there would be an inconsequential                effect on 2006 earnings of such a shift in exchange                rates. |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Statement      of Changes in Shareowner’s Equity **

**Overview      of Our Cash Flow from 2003 through 2005 **

----

----

**Contractual      Obligations**

|                                                                  | **Payments                due by period** |
|-----------------------------------------------------------------------|-------------------------------------------|
| *(In                billions)*                                        | **Total**                                 |   | **2006** |   | **2007-2008** |   | **2009-2010** |   | **2011                and****thereafter** |
|                                                                  |                                      |   |   |   |   |   |   |   |   |
| Borrowings                (note 11)                                   | $                                         | 362.1 |   | $ | 157.7 |   | $ | 83.9 |   |   | $ | 45.6 |   |   | $ | 74.9 |   |
|                                                                  |                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest                on borrowings                                 |                                      | 64.0 |   |   | 12.0 |   |   | 17.0 |   |   |   | 10.0 |   |   |   | 25.0 |   |
|                                                                  |                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating                lease obligations (note 4)                   |                                      | 4.0 |   |   | 0.8 |   |   | 1.3 |   |   |   | 0.9 |   |   |   | 1.0 |   |
|                                                                  |                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Purchase                obligations(a)(b)                             |                                      | 22.0 |   |   | 15.0 |   |   | 6.0 |   |   |   | 1.0 |   |   |   | - |   |
|                                                                  |                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Insurance                liabilities (note                12)(c) |                                      | 28.0 |   |   | 5.0 |   |   | 6.0 |   |   |   | 4.0 |   |   |   | 13.0 |   |
|                                                                  |                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other                liabilities(d)                                   |                                      | 13.0 |   |   | 10.0 |   |   | 1.0 |   |   |   | - |   |   |   | 2.0 |   |
|                                                                  |                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Contractual                obligations of                             |                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| discontinued                operations(e)                             |                                      | 12.0 |   |   | 1.0 |   |   | 1.0 |   |   |   | 1.0 |   |   |   | 9.0 |   |
|                                                                  |                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

| (a)  | Included                all take-or-pay arrangements, capital expenditures, contractual                commitments to purchase equipment that will be classified as equipment                leased to others, software acquisition/license commitments and any                contractually required cash payments for acquisitions.                                                                                                                                                                              |   |
|-----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| (b)  | Excluded                funding commitments entered into in the ordinary course of business.                Further information on these commitments and other guarantees is                provided                in note 20.                                                                                                                                                                                                                                                                                    |   |
| (c)  | Included                guaranteed investment contracts (GICs), structured settlements and                single                premium immediate annuities based on scheduled payouts, as well as                those                contracts with reasonably determinable cash flows such as deferred                annuities, universal life, term life, long-term care, whole life                and other                life insurance contracts.                                                        |   |
| (d)       | Included                an estimate of future expected funding requirements related to our                pension                benefit plans. Because their future cash outflows are uncertain,                the                following non-current liabilities are excluded from the table above:                deferred taxes, derivatives, deferred revenue and other sundry items.                See                notes 13 and 18 for further information on certain of these                items.  |   |
| (e)       | Included                payments for borrowings and interest on borrowings of $3.6 billion,                operating lease obligations of $0.2 billion, other liabilities of                $2.8                billion, and insurance liabilities of $5.4 billion. Insurance liabilities                primarily included workers’ compensation tabular indemnity loan and                long-term liability claims.                                                                                           |   |

**Off-Balance      Sheet Arrangements**

----

**Debt      Instruments, Guarantees and Covenants**

| • | Earnings                and profitability, revenue growth, the breadth and diversity of sources                of                income and return on assets, |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | Asset                quality, including delinquency and write-off ratios and reserve                coverage, |
|---------|---------------------------------------------------------------------------------------------------------------|

| • | Funding                and liquidity, including cash generated from operating activities,                leverage ratios such as debt-to-capital, market access, back-up liquidity                from banks and other sources, composition of total debt and interest                coverage, and |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | Capital                adequacy, including required capital and tangible leverage                ratios. |
|---------|----------------------------------------------------------------------------------------------------------|

| • | Franchise                strength, including competitive advantage and market conditions and                position, |
|---------|-----------------------------------------------------------------------------------------------------------------------|

| • | Strength                of management, including experience, corporate governance and strategic                thinking, and |
|---------|------------------------------------------------------------------------------------------------------------------------------|

| • | Financial                reporting quality, including clarity, completeness and transparency                of all                financial performance                communications. |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| *December                31*                          | **2005** |   | **2004** |
|-------------------------------------------------------|----------|--------|----------|
|                                                  |     |   |     |   |   |   |   |
| Senior                notes and other long-term debt  |     | 57     | %        |   |   | 58 | % |
| Commercial                paper                       |     | 26     |     |   |   | 25 |   |
| Current                portion of long-term debt      |     | 12     |     |   |   | 11 |   |
| Other                - bank and other retail deposits |     | 5      |     |   |   | 6 |   |
| Total                                                 |     | 100    | %        |   |   | 100 | % |

----

**Principal      debt conditions**

| • | Swap,                forward and option contracts are required to be executed under                master-netting agreements containing mutual down-grade provisions                that                provide the ability of the counterparty to require assignment or                termination if the long-term credit rating of GECS were to fall below                A-/A3. Had this provision been triggered at December 31, 2005, we                could                have been required to disburse $2.0                billion. |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | If                GE Capital’s ratio of earnings to fixed charges, which was 1.70 at the end                of 2005, were to deteriorate to 1.10:1 or, upon redemption of certain                preferred stock, its ratio of debt to equity, which was 7.09 at the                end of                2005, were to exceed 8:1, GE has committed to contribute capital                to GE                Capital. GE also has guaranteed certain issuances of our subordinated                debt                with a face amount of $1.0 billion at December 31, 2005 and 2004. |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | If                the short-term credit rating of GE Capital or certain consolidated,                liquidating securitization entities discussed further in note 19                were to                fall below A-1/P-1, GE Capital would be required to provide substitute                liquidity for those entities or provide funds to retire the outstanding                commercial paper. The maximum net amount that GE Capital would be                required                to provide in the event of such a downgrade is determined by contract,                and                amounted to $12.8 billion at January 1, 2006. Amounts related to                non-consolidated SPEs were $1.7                billion. |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | If                the long-term credit rating of GE Capital were to fall below AA/Aa2,                GE                Capital would be required to provide substitute credit support or                liquidate the consolidated, liquidating securitization entities.                The                maximum amount that GE Capital would be required to substitute in                the                event of such a downgrade is determined by contract, and amounted                to $0.6                billion at December 31, 2005. |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | For                certain transactions, if the long-term credit rating of GE Capital                were to                fall below A/A2 or BBB+/Baa1 or its short-term credit rating were                to fall                below A-2/P-2, GE Capital could be required to provide substitute                credit                support or fund the undrawn commitment. GE Capital could be required                to                provide up to $2.0 billion in the event of such a downgrade based                on terms                in effect at December 31,                2005.  |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Critical      Accounting Estimates**

----

**Losses      on financing receivables **

**Asset      impairment **

**Investments.**

**Long-lived      assets.**

----

**Goodwill      and other identified intangible assets.**

**Derivatives      and Hedging. **

**Other      loss contingencies**

----

**Supplemental      Information**

**Financial      Measures that Supplement Generally Accepted Accounting      Principles**

| • | Average                total shareowner’s equity, excluding effects of discontinued                operations |
|---------|---------------------------------------------------------------------------------------------------------------------|

| • | Delinquency                rates on certain financing receivables of the GE Commercial Finance                and GE                Consumer Finance segments for 2005, 2004 and 2003 |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Average      Total Shareowner’s Equity, Excluding Effects of Discontinued Operations, as      reported**

| *December                31**(In                millions)*        | **2005** |   | **2004** |   | **2003** |   | **2002** |   | **2001** |   |
|-------------------------------------------------------------------|----------|--------|----------|--------|----------|--------|----------|--------|----------|--------|
|                                                              |     |   |     |   |     |   |     |   |     |   |   |   |   |   |   |
| Average                total shareowner’s equity(b)         | $        | 54,206 |     | $      | 48,938   |   | $        | 41,979 |     | $      | 31,256 |   | $ | 24,896 |   |
| Less:                                                             |     |   |     |   |     |   |     |   |     |   |   |   |   |   |   |
| Cumulative                effect of earnings from                 |     |   |     |   |     |   |     |   |     |   |   |   |   |   |   |
| discontinued                operations(c)                         |     | 3,094  |     |   | 2,980    |   |     | 925    |     |   | 1,007 |   |   | 226 |   |
| Average                net investment in discontinued             |     |   |     |   |     |   |     |   |     |   |   |   |   |   |   |
| operations(d)                                                     |     | 4,620  |     |   | -        |   |     | -      |     |   | - |   |   | - |   |
| Average                total shareowner’s equity, excluding |     |   |     |   |     |   |     |   |     |   |   |   |   |   |   |
| effects                of discontinued operations(a)              | $        | 46,492 |     | $      | 45,958   |   | $        | 41,054 |     | $      | 30,249 |   | $ | 24,670 |   |
|                                                              |     |   |     |   |     |   |     |   |     |   |   |   |   |   |   |

| (a)  | Used                for computing return on average shareowner’s equity shown in the Selected                Financial Data section.                                                                      |   |
|-----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| (b)  | On                an annual basis, calculated using a five-point average.                                                                                                                                       |   |
| (c)  | Represented                the average cumulative net earnings effects of discontinued operations                from 2001 to 2005 (on an annual basis, calculated using a five-point                average).  |   |
| (d)       | Represented                the average net investment in discontinued operations for the second                half                of 2005 only - see below.                                                         |   |

----

**Average      Total Shareowner’s Equity, Excluding Effects of Discontinued Operations, as      restated**

| *December                31**(In                millions)*        | **2005****(Restated)** |   | **2004****(Restated)** |   | **2003****(Restated)** |   | **2002****(Restated)** |   | **2001****(Restated)** |   |
|-------------------------------------------------------------------|------------------------|--------|------------------------|--------|------------------------|--------|------------------------|--------|------------------------|--------|
|                                                              |                   |   |                   |   |                   |   |                   |   |                   |   |   |   |   |   |   |
| Average                total shareowner’s equity(b)         | $                      | 54,229 |                   | $      | 48,989                 |   | $                      | 41,980 |                   | $      | 31,237 |   | $ | 28,387 |   |
| Less:                                                             |                   |   |                   |   |                   |   |                   |   |                   |   |   |   |   |   |   |
| Cumulative                effect of earnings from                 |                   |   |                   |   |                   |   |                   |   |                   |   |   |   |   |   |   |
| discontinued                operations(c)                         |                   | 3,094  |                   |   | 2,980                  |   |                   | 925    |                   |   | 1,007 |   |   | 226 |   |
| Average                net investment in discontinued             |                   |   |                   |   |                   |   |                   |   |                   |   |   |   |   |   |   |
| operations(d)                                                     |                   | 4,620  |                   |   | -                      |   |                   | -      |                   |   | - |   |   | - |   |
| Average                total shareowner’s equity, excluding |                   |   |                   |   |                   |   |                   |   |                   |   |   |   |   |   |   |
| effects                of discontinued operations(a)              | $                      | 46,515 |                   | $      | 46,009                 |   | $                      | 41,055 |                   | $      | 30,230 |   | $ | 28,161 |   |
|                                                              |                   |   |                   |   |                   |   |                   |   |                   |   |   |   |   |   |   |

| (a)  | Used                for computing return on average shareowner’s equity shown in the Selected                Financial Data section.                                                                      |   |
|-----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| (b)  | On                an annual basis, calculated using a five-point average.                                                                                                                                       |   |
| (c)  | Represented                the average cumulative net earnings effects of discontinued operations                from 2001 to 2005 (on an annual basis, calculated using a five-point                average).  |   |
| (d)       | Represented                the average net investment in discontinued operations for the second                half                of 2005 only - see below.                                                         |   |

**Delinquency      Rates on Certain Financing Receivables**

**GE      Commercial Finance**

| *December                31*  | **2005** |   | **2004** |   | **2003** |   |
|------------------------------------|----------|--------|----------|--------|----------|--------|
|                               |     |   |     |   |     |   |
| Managed                            | 1.31     | %      | 1.40     | %      | 1.38     | %      |
| Off-book                           | 0.76     |   | 0.90     |   | 1.27     |   |
| On-book                            | 1.53     |   | 1.58     |   | 1.41     |   |

**GE      Consumer Finance**

| *December                31*  | **2005** |   | **2004** |   | **2003** |   |
|------------------------------------|----------|--------|----------|--------|----------|--------|
|                               |     |   |     |   |     |   |
| Managed                            | 5.08     | %      | 4.85     | %      | 5.62     | %      |
| Off-book                           | 5.28     |   | 5.09     |   | 5.04     |   |
| On-book                            | 5.07     |   | 4.84     |   | 5.67     |   |

----

**Item      7A. Quantitative and Qualitative Disclosures About Market      Risk.**

----

**Item      8. Financial Statements and Supplementary Data.**

**Report      of Independent Registered Public Accounting Firm**

*To      the Board of Directors of*

*General      Electric Capital Services, Inc.:*

----

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

**Statement      of Earnings**

| *For                the years ended December 31 (In millions)*                                            | **2005****(Restated)** |   | **2004****(Restated)** |   | **2003****(Restated)** |   |
|-----------------------------------------------------------------------------------------------------------|------------------------|--------|------------------------|--------|------------------------|--------|
|                                                                                                      |                   |   |                   |   |                   |   |   |   |   |
| **Revenues**                                                                                              |                   |   |                   |   |                   |   |   |   |   |
| Revenues                from services (note 3)                                                            | $                      | 56,769 |                   | $      | 50,054                 |   | $ | 40,750 |   |
| Sales                of goods                                                                             |                   | 2,528  |                   |   | 2,840                  |   |   | 2,228 |   |
| Commercial                paper interest rate swap adjustment (note 1)                                    |                   | 540    |                   |   | 518                    |   |   | 535 |   |
| Total                revenues                                                                             |                   | 59,837 |                   |   | 53,412                 |   |   | 43,513 |   |
|                                                                                                      |                   |   |                   |   |                   |   |   |   |   |
| **Costs                and expenses**                                                                     |                   |   |                   |   |                   |   |   |   |   |
| Interest                                                                                                  |                   | 14,259 |                   |   | 11,076                 |   |   | 9,896 |   |
| Operating                and administrative (note 4)                                                      |                   | 16,621 |                   |   | 15,972                 |   |   | 12,508 |   |
| Cost                of goods sold                                                                         |                   | 2,369  |                   |   | 2,741                  |   |   | 2,119 |   |
| Investment                contracts, insurance losses and insurance annuity                benefits  |                   | 5,674  |                   |   | 3,800                  |   |   | 3,069 |   |
| Provision                for losses on financing receivables (note 7)                                     |                   | 3,841  |                   |   | 3,888                  |   |   | 3,752 |   |
| Depreciation                and amortization (note 8)                                                     |                   | 6,037  |                   |   | 5,816                  |   |   | 4,587 |   |
| Minority                interest in net earnings of consolidated affiliates                               |                   | 202    |                   |   | 190                    |   |   | 127 |   |
| Total                costs and expenses                                                                   |                   | 49,003 |                   |   | 43,483                 |   |   | 36,058 |   |
|                                                                                                      |                   |   |                   |   |                   |   |   |   |   |
| **Earnings                from continuing operations before income taxes**                                |                   |   |                   |   |                   |   |   |   |   |
| **and                accounting change**                                                                  |                   | 10,834 |                   |   | 9,929                  |   |   | 7,455 |   |
| Provision                for income taxes (note 13)                                                       |                   | (1,335 | )                      |   | (1,735                 | )      |   | (1,199 | ) |
|                                                                                                      |                   |   |                   |   |                   |   |   |   |   |
| **Earnings                from continuing operations before accounting                change**            |                   | 9,499  |                   |   | 8,194                  |   |   | 6,256 |   |
| Earnings                (loss) from discontinued operations, net of taxes (note 2)                        |                   | (1,922 | )                      |   | 534                    |   |   | 2,057 |   |
|                                                                                                      |                   |   |                   |   |                   |   |   |   |   |
| **Earnings                before accounting change**                                                      |                   | 7,577  |                   |   | 8,728                  |   |   | 8,313 |   |
| Cumulative                effect of accounting change (note 1)                                            |                   | -      |                   |   | -                      |   |   | (339 | ) |
| **Net                earnings**                                                                           | $                      | 7,577  |                   | $      | 8,728                  |   | $ | 7,974 |   |
|                                                                                                      |                   |   |                   |   |                   |   |   |   |   |
|                                                                                                      |                   |   |                   |   |                   |   |   |   |   |
| **Statement                of Changes in Shareowner’s Equity**                                      |                   |   |                   |   |                   |   |   |   |   |
|                                                                                                      |                   |   |                   |   |                   |   |   |   |   |
| *(In                millions)*                                                                            | **2005****(Restated)** |   | **2004****(Restated)** |   | **2003****(Restated)** |   |
| **Changes                in shareowner’s equity**                (note 15)                          |                   |   |                   |   |                   |   |   |   |   |
| Balance                at January 1                                                                       | $                      | 54,379 |                   | $      | 45,790                 |   | $ | 37,202 |   |
| Dividends                and other transactions with shareowner                                           |                   | (7,800 | )                      |   | (3,003                 | )      |   | (3,438 | ) |
| Changes                other than transactions with shareowner                                            |                   |   |                   |   |                   |   |   |   |   |
| Increase                attributable to net earnings                                                      |                   | 7,577  |                   |   | 8,728                  |   |   | 7,974 |   |
| Investment                securities - net                                                                |                   | (591   | )                      |   | 481                    |   |   | 651 |   |
| Currency                translation adjustments - net                                                     |                   | (2,817 | )                      |   | 2,538                  |   |   | 3,359 |   |
| Cash                flow hedges - net                                                                     |                   | 93     |                   |   | (46                    | )      |   | 61 |   |
| Minimum                pension liabilities - net                                                          |                   | (29    | )                      |   | (109                   | )      |   | (19 | ) |
| Total                changes other than transactions with shareowner                                      |                   | 4,233  |                   |   | 11,592                 |   |   | 12,026 |   |
| Balance                at December 31                                                                     | $                      | 50,812 |                   | $      | 54,379                 |   | $ | 45,790 |   |
|                                                                                                      |                   |   |                   |   |                   |   |   |   |   |

| The                notes to consolidated financial statements are an integral part of                these                statements. |   |
|---------------------------------------------------------------------------------------------------------------------------------------|--------|

----

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

**Statement      of Financial Position**

| *At                December 31 (In millions, except share amounts)*                                                                                                                                                   | **2005****(Restated)** |    | **2004****(Restated)** |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------|---------|------------------------|--------|
|                                                                                                                                                                                                                  |                   |    |                   |   |   |   |
| **Assets**                                                                                                                                                                                                            |                   |    |                   |   |   |   |
| Cash                and equivalents                                                                                                                                                                                   | $                      | 7,316   |                   | $      | 9,191 |   |
| Investment                securities (note 5)                                                                                                                                                                         |                   | 52,706  |                   |   | 56,539 |   |
| Inventories                                                                                                                                                                                                           |                   | 159     |                   |   | 189 |   |
| Financing                receivables - net (notes 6 and 7)                                                                                                                                                            |                   | 287,639 |                   |   | 282,699 |   |
| Other                receivables                                                                                                                                                                                      |                   | 19,060  |                   |   | 14,965 |   |
| Buildings                and equipment - net (note 8)                                                                                                                                                                 |                   | 51,024  |                   |   | 46,347 |   |
| Intangible                assets - net (note 9)                                                                                                                                                                       |                   | 23,887  |                   |   | 23,736 |   |
| Other                assets (note 10)                                                                                                                                                                                 |                   | 52,037  |                   |   | 52,682 |   |
| Assets                of discontinued operations (note 2)                                                                                                                                                             |                   | 46,756  |                   |   | 132,266 |   |
| Total                assets                                                                                                                                                                                           | $                      | 540,584 |                   | $      | 618,614 |   |
|                                                                                                                                                                                                                  |                   |    |                   |   |   |   |
| **Liabilities                and equity**                                                                                                                                                                             |                   |    |                   |   |   |   |
| Borrowings                (note 11)                                                                                                                                                                                   | $                      | 362,069 |                   | $      | 355,501 |   |
| Accounts                payable                                                                                                                                                                                       |                   | 13,133  |                   |   | 11,374 |   |
| Investment                contracts, insurance liabilities and insurance annuity benefits (note                12)                                                                                                    |                   | 45,722  |                   |   | 48,393 |   |
| Other                liabilities                                                                                                                                                                                      |                   | 17,453  |                   |   | 19,300 |   |
| Deferred                income taxes (note 13)                                                                                                                                                                        |                   | 12,579  |                   |   | 11,692 |   |
| Liabilities                of and minority interest in discontinued operations (note                2)                                                                                                                |                   | 36,568  |                   |   | 113,073 |   |
| Total                liabilities                                                                                                                                                                                      |                   | 487,524 |                   |   | 559,333 |   |
|                                                                                                                                                                                                                  |                   |    |                   |   |   |   |
| Minority                interest in equity of consolidated affiliates (note 14)                                                                                                                                       |                   | 2,248   |                   |   | 4,902 |   |
|                                                                                                                                                                                                                  |                   |    |                   |   |   |   |
| Cumulative                preferred stock, $10,000 par value (80,000 shares authorized;51,000                shares issued and held primarily by consolidatedaffiliates                at December 31, 2005 and 2004) |                   | 10      |                   |   | 10 |   |
| Common                stock, $1,000 par value (1,260 shares authorized at December                31, 2005 and 2004, and 1,064 shares issued and outstanding                at December 31, 2005 and 2004)            |                   | 1       |                   |   | 1 |   |
| Accumulated                gains (losses) - net                                                                                                                                                                       |                   |    |                   |   |   |   |
| Investment                securities                                                                                                                                                                                  |                   | 1,754   |                   |   | 2,345 |   |
| Currency                translation adjustments                                                                                                                                                                       |                   | 2,287   |                   |   | 5,104 |   |
| Cash                flow hedges                                                                                                                                                                                       |                   | (343    | )                      |   | (436 | ) |
| Minimum                pension liabilities                                                                                                                                                                            |                   | (179    | )                      |   | (150 | ) |
| Additional                paid-in capital                                                                                                                                                                             |                   | 12,376  |                   |   | 12,360 |   |
| Retained                earnings                                                                                                                                                                                      |                   | 34,906  |                   |   | 35,145 |   |
| Total                shareowner’s equity (note 15)                                                                                                                                                              |                   | 50,812  |                   |   | 54,379 |   |
| Total                liabilities and equity                                                                                                                                                                           | $                      | 540,584 |                   | $      | 618,614 |   |
|                                                                                                                                                                                                                  |                   |    |                   |   |   |   |

| The                sum of accumulated gains (losses) on investment securities, currency                translation adjustments, cash flow hedges and minimum pension liabilities                constitutes “Accumulated nonowner changes other than earnings,” as shown                in note 15, and was $3,519 million and $6,863 million at December                31, 2005                and 2004, respectively.  |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| The                notes to consolidated financial statements are an integral part of                this                statement.                                                                                                                                                                                                                                                                                                        |   |

----

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

**Statement      of Cash Flows**

| *For                the years ended December 31 (In millions)*                                      | **2005****(Restated)** | **(a)** | **2004****(Restated)** | **(a)** | **2003****(Restated)** | **(a)** |
|-----------------------------------------------------------------------------------------------------|------------------------|---------|------------------------|---------|------------------------|---------|
|                                                                                                |                   |    |                   |    |                   |    |   |   |   |
| **Cash                flows - operating activities**                                                |                   |    |                   |    |                   |    |   |   |   |
| Net                earnings                                                                         | $                      | 7,577   |                   | $       | 8,728                  |    | $ | 7,974 |   |
| Loss                (earnings) from discontinued operations                                         |                   | 1,922   |                   |    | (534                   | )       |   | (2,057 | ) |
| Adjustments                to reconcile net earnings to cash provided                               |                   |    |                   |    |                   |    |   |   |   |
| from                operating activities                                                            |                   |    |                   |    |                   |    |   |   |   |
| Cumulative                effect of accounting change                                               |                   | -       |                   |    | -                      |    |   | 339 |   |
| Depreciation                and amortization of buildings and equipment                             |                   | 6,037   |                   |    | 5,816                  |    |   | 4,587 |   |
| Deferred                income taxes                                                                |                   | (603    | )                      |    | 225                    |    |   | 1,028 |   |
| Decrease                (increase) in inventories                                                   |                   | 30      |                   |    | (9                     | )       |   | (35 | ) |
| Increase                in accounts payable                                                         |                   | 596     |                   |    | 2,927                  |    |   | 96 |   |
| Increase                (decrease) in insurance liabilities                                         |                   | 1,034   |                   |    | 1,959                  |    |   | (729 | ) |
| Provision                for losses on financing receivables                                        |                   | 3,841   |                   |    | 3,888                  |    |   | 3,752 |   |
| All                other operating activities (note 16)                                             |                   | 476     |                   |    | (2,875                 | )       |   | (896 | ) |
| Cash                from operating activities - continuing operations                               |                   | 20,910  |                   |    | 20,125                 |    |   | 14,059 |   |
| Cash                from operating activities - discontinued operations                             |                   | 3,854   |                   |    | 6,002                  |    |   | 7,389 |   |
| **Cash                from operating activities**                                                   |                   | 24,764  |                   |    | 26,127                 |    |   | 21,448 |   |
|                                                                                                |                   |    |                   |    |                   |    |   |   |   |
| **Cash                flows - investing activities**                                                |                   |    |                   |    |                   |    |   |   |   |
| Additions                to buildings and equipment                                                 |                   | (11,629 | )                      |    | (10,665                | )       |   | (7,593 | ) |
| Dispositions                of buildings and equipment                                              |                   | 6,027   |                   |    | 5,838                  |    |   | 4,918 |   |
| Net                increase in financing receivables (note 16)                                      |                   | (16,954 | )                      |    | (15,280                | )       |   | (4,687 | ) |
| Payments                for principal businesses purchased                                          |                   | (7,167  | )                      |    | (13,888                | )       |   | (10,482 | ) |
| All                other investing activities (note 16)                                             |                   | 4,644   |                   |    | 8,386                  |    |   | 6,103 |   |
| Cash                used for investing activities - continuing operations                           |                   | (25,079 | )                      |    | (25,609                | )       |   | (11,741 | ) |
| Cash                used for investing activities - discontinued operations                         |                   | (4,718  | )                      |    | (7,962                 | )       |   | (5,945 | ) |
| **Cash                used for investing activities**                                               |                   | (29,797 | )                      |    | (33,571                | )       |   | (17,686 | ) |
|                                                                                                |                   |    |                   |    |                   |    |   |   |   |
| **Cash                flows - financing activities**                                                |                   |    |                   |    |                   |    |   |   |   |
| Net                increase (decrease) in borrowings (maturities of 90 days or                less) |                   | (4,044  | )                      |    | 33                     |    |   | (13,487 | ) |
| Newly                issued debt (maturities longer than 90 days) (note 16)                         |                   | 65,054  |                   |    | 58,143                 |    |   | 60,113 |   |
| Repayments                and other reductions (maturities longer                                   |                   |    |                   |    |                   |    |   |   |   |
| than                90 days) (note 16)                                                              |                   | (49,709 | )                      |    | (45,538                | )       |   | (43,202 | ) |
| Dividends                paid to shareowner                                                         |                   | (7,816  | )                      |    | (3,105                 | )       |   | (3,435 | ) |
| All                other financing activities (note 16)                                             |                   | (1,191  | )                      |    | (3,397                 | )       |   | 286 |   |
| Cash                from financing activities - continuing operations                               |                   | 2,294   |                   |    | 6,136                  |    |   | 275 |   |
| Cash                from (used for) financing activities - discontinued                operations   |                   | 478     |                   |    | 2,402                  |    |   | (682 | ) |
| **Cash                from (used for) financing activities**                                        |                   | 2,772   |                   |    | 8,538                  |    |   | (407 | ) |
|                                                                                                |                   |    |                   |    |                   |    |   |   |   |
| **Increase                (decrease) in cash and equivalents during year**                          |                   | (2,261  | )                      |    | 1,094                  |    |   | 3,355 |   |
| Cash                and equivalents at beginning of year                                            |                   | 12,367  |                   |    | 11,273                 |    |   | 7,918 |   |
| Cash                and equivalents at end of year                                                  |                   | 10,106  |                   |    | 12,367                 |    |   | 11,273 |   |
| Less                cash and equivalents of discontinued operations at end of                year   |                   | 2,790   |                   |    | 3,176                  |    |   | 2,734 |   |
| **Cash                and equivalents of continuing operations at end of                year**      | $                      | 7,316   |                   | $       | 9,191                  |    | $ | 8,539 |   |
|                                                                                                |                   |    |                   |    |                   |    |   |   |   |
| **Supplemental                disclosure of cash flows information**                                |                   |    |                   |    |                   |    |   |   |   |
| Cash                paid during the year for interest                                               | $                      | (15,518 | )                      | $       | (11,304                | )       | $ | (10,662 | ) |
| Cash                recovered (paid) during the year for income taxes                               |                   | (1,425  | )                      |    | 922                    |    |   | 1,146 |   |
|                                                                                                |                   |    |                   |    |                   |    |   |   |   |

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

----

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

**Notes      to Consolidated Financial Statements**

**Note      1. Summary of Significant Accounting Policies**

**2007      Restatement**

*Accounting      for Derivative Instruments and Hedging Activities*

**Background**

----

| *For                the years ended December 31(In millions)* | **2005**                         |   | **2004**           |   | **2003**                         |   |
|---------------------------------------------------------------|----------------------------------|--------|--------------------|--------|----------------------------------|--------|
|                                                          | **As****previously****reported** |   | **As****restated** |   | **As****previously****reported** |   | **As****restated** |   | **As****previously****reported** |   | **As****restated** |   |
| **Statement                of Earnings**                      |                             |   |               |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                          |                             |   |               |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial                paper interest rate swap            |                             |   |               |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |
| adjustment(a)                                            | $                                | -      |               | $      | 540                              |   | $ | - |   | $ | 518 |   | $ | - |   | $ | 535 |   |
| Interest                                                      |                             | 14,308 |               |   | 14,259                           |   |   | 11,121 |   |   | 11,076 |   |   | 9,897 |   |   | 9,896 |   |
| Earnings                from continuing operations            |                             |   |               |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |
| before                income taxes and                        |                             |   |               |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |
| accounting                change                              |                             | 10,245 |               |   | 10,834                           |   |   | 9,366 |   |   | 9,929 |   |   | 6,919 |   |   | 7,455 |   |
| Provision                for income taxes (note 13)           |                             | (1,104 | )                  |   | (1,335                           | )      |   | (1,513 | ) |   | (1,735 | ) |   | (988 | ) |   | (1,199 | ) |
| Earnings                from continuing operations            |                             |   |               |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |
| before                accounting change                       |                             | 9,141  |               |   | 9,499                            |   |   | 7,853 |   |   | 8,194 |   |   | 5,931 |   |   | 6,256 |   |
| Earnings                before accounting change              |                             | 7,219  |               |   | 7,577                            |   |   | 8,387 |   |   | 8,728 |   |   | 7,988 |   |   | 8,313 |   |
| Net                earnings                                   |                             | 7,219  |               |   | 7,577                            |   |   | 8,387 |   |   | 8,728 |   |   | 7,649 |   |   | 7,974 |   |
|                                                          |                             |   |               |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |

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

| *For                the years ended December 31 (In millions)* | **2005**                         |   | **2004**           |   | **2003**                         |   |
|----------------------------------------------------------------|----------------------------------|--------|--------------------|--------|----------------------------------|--------|
|                                                           | **As****previously****reported** |   | **As****restated** |   | **As****previously****reported** |   | **As****restated** |   | **As****previously****reported** |   | **As****restated** |   |
| **Statement                of Changes in**                     |                             |   |               |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Shareowner’s                Equity**                   |                             |   |               |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                           |                             |   |               |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance                at January 1                            | $                                | 54,292 |               | $      | 54,379                           |   | $ | 45,759 |   | $ | 45,790 |   | $ | 37,302 |   | $ | 37,202 |   |
| Increase                attributable to net earnings           |                             | 7,219  |               |   | 7,577                            |   |   | 8,387 |   |   | 8,728 |   |   | 7,649 |   |   | 7,974 |   |
| Cash                flow hedges - net                          |                             | 541    |               |   | 93                               |   |   | 239 |   |   | (46 | ) |   | 255 |   |   | 61 |   |
| Balance                at December 31                          |                             | 50,815 |               |   | 50,812                           |   |   | 54,292 |   |   | 54,379 |   |   | 45,759 |   |   | 45,790 |   |

| *At                December 31 (In millions)*            | **2005**                         |    | **2004**           |   |
|----------------------------------------------------------|----------------------------------|---------|--------------------|--------|
|                                                     | **As****previously****reported** |    | **As****restated** |   | **As****previously****reported** |   | **As****restated** |   |
| **Statement                of Financial Position**       |                             |    |               |   |   |   |   |   |   |   |   |   |
|                                                     |                             |    |               |   |   |   |   |   |   |   |   |   |
| Other                assets                              | $                                | 52,058  |               | $      | 52,037 |   | $ | 52,572 |   | $ | 52,682 |   |
| Total                assets                              |                             | 540,605 |               |   | 540,584 |   |   | 618,504 |   |   | 618,614 |   |
|                                                     |                             |    |               |   |   |   |   |   |   |   |   |   |
| Deferred                income taxes (note 13)           |                             | 12,597  |               |   | 12,579 |   |   | 11,669 |   |   | 11,692 |   |
| Total                liabilities                         |                             | 487,542 |               |   | 487,524 |   |   | 559,310 |   |   | 559,333 |   |
|                                                     |                             |    |               |   |   |   |   |   |   |   |   |   |
| Cash                flow hedges                          |                             | (813    | )                  |   | (343 | ) |   | (1,354 | ) |   | (436 | ) |
| Retained                earnings                         |                             | 35,379  |               |   | 34,906 |   |   | 35,976 |   |   | 35,145 |   |
| Total                shareowner’s equity (note 16) |                             | 50,815  |               |   | 50,812 |   |   | 54,292 |   |   | 54,379 |   |
| Total                liabilities and equity              |                             | 540,605 |               |   | 540,584 |   |   | 618,504 |   |   | 618,614 |   |

----

|                                                                             | **2005**                         |   |
|----------------------------------------------------------------------------------|----------------------------------|--------|
|                                                                             | **First                quarter** |   | **Second                quarter** |   | **Third                quarter** |   | **Fourth                quarter** |   |
| *Quarterly                Information (unaudited)**(In                millions)* | **As****previously****reported** |   | **As****restated** |   | **As****previously****reported** |   | **As****restated** |   | **As****previously****reported** |   | **As****restated** |   | **As****previously****reported** |   | **As****restated** |   |
| **Statement                of Earnings**                                         |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                             |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial                paper interest rate                                    |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| swap                adjustment(a)                                                | $                                | -      |   | $ | 358 |   | $ | - |   | $ | (239 | ) | $ | - |   | $ | 271 |   | $ | - |   | $ | 150 |   |
| Interest                                                                         |                             | 3,422  |   |   | 3,410 |   |   | 3,610 |   |   | 3,599 |   |   | 3,520 |   |   | 3,507 |   |   | 3,756 |   |   | 3,743 |   |
| Earnings                from continuing operations                               |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| before                income taxes and                                           |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| accounting                change                                                 |                             | 2,075  |   |   | 2,445 |   |   | 2,234 |   |   | 2,006 |   |   | 3,057 |   |   | 3,341 |   |   | 2,879 |   |   | 3,042 |   |
| Provision                for income taxes                                        |                             | (210   | ) |   | (355 | ) |   | (210 | ) |   | (121 | ) |   | (480 | ) |   | (591 | ) |   | (204 | ) |   | (268 | ) |
| Earnings                from continuing operations                               |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| before                accounting change                                          |                             | 1,865  |   |   | 2,090 |   |   | 2,024 |   |   | 1,885 |   |   | 2,577 |   |   | 2,750 |   |   | 2,675 |   |   | 2,774 |   |
| Earnings                before accounting change                                 |                             | 2,268  |   |   | 2,493 |   |   | 2,299 |   |   | 2,160 |   |   | 2,685 |   |   | 2,858 |   |   | (33 | ) |   | 66 |   |
| Net                earnings                                                      |                             | 2,268  |   |   | 2,493 |   |   | 2,299 |   |   | 2,160 |   |   | 2,685 |   |   | 2,858 |   |   | (33 | ) |   | 66 |   |
|                                                                             |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

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

|                                                                             | **2004**                         |   |
|----------------------------------------------------------------------------------|----------------------------------|--------|
|                                                                             | **First                quarter** |   | **Second                quarter** |   | **Third                quarter** |   | **Fourth                quarter** |   |
| *Quarterly                Information (unaudited)**(In                millions)* | **As****previously****reported** |   | **As****restated** |   | **As****previously****reported** |   | **As****restated** |   | **As****previously****reported** |   | **As****restated** |   | **As****previously****reported** |   | **As****restated** |   |
| **Statement                of Earnings**                                         |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                             |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial                paper interest rate                                    |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| swap                adjustment(a)                                                | $                                | -      |   | $ | (233 | ) | $ | - |   | $ | 970 |   | $ | - |   | $ | (381 | ) | $ | - |   | $ | 162 |   |
| Interest                                                                         |                             | 2,605  |   |   | 2,595 |   |   | 2,755 |   |   | 2,745 |   |   | 2,646 |   |   | 2,633 |   |   | 3,115 |   |   | 3,103 |   |
| Earnings                from continuing operations                               |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| before                income taxes and                                           |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| accounting                change                                                 |                             | 1,998  |   |   | 1,775 |   |   | 1,676 |   |   | 2,656 |   |   | 2,673 |   |   | 2,305 |   |   | 3,019 |   |   | 3,193 |   |
| Provision                for income taxes                                        |                             | (426   | ) |   | (339 | ) |   | (245 | ) |   | (629 | ) |   | (550 | ) |   | (406 | ) |   | (292 | ) |   | (361 | ) |
| Earnings                from continuing operations                               |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| before                accounting change                                          |                             | 1,572  |   |   | 1,436 |   |   | 1,431 |   |   | 2,027 |   |   | 2,123 |   |   | 1,899 |   |   | 2,727 |   |   | 2,832 |   |
| Earnings                before accounting change                                 |                             | 1,970  |   |   | 1,834 |   |   | 1,524 |   |   | 2,120 |   |   | 2,253 |   |   | 2,029 |   |   | 2,640 |   |   | 2,745 |   |
| Net                earnings                                                      |                             | 1,970  |   |   | 1,834 |   |   | 1,524 |   |   | 2,120 |   |   | 2,253 |   |   | 2,029 |   |   | 2,640 |   |   | 2,745 |   |
|                                                                             |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

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

|                                                                             | **2005**                         |    |
|----------------------------------------------------------------------------------|----------------------------------|---------|
|                                                                             | **First                quarter** |    | **Second                quarter** |   | **Third                quarter** |   | **Fourth                quarter** |   |
| *Quarterly                Information (unaudited)**(In                millions)* | **As****previously****reported** |    | **As****restated** |   | **As****previously****reported** |   | **As****restated** |   | **As****previously****reported** |   | **As****restated** |   | **As****previously****reported** |   | **As****restated** |   |
| **Statement                of Financial Position**                               |                             |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                             |                             |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other                assets                                                      | $                                | 50,756  |   | $ | 50,743 |   | $ | 52,753 |   | $ | 52,670 |   | $ | 49,874 |   | $ | 49,959 |   | $ | 52,058 |   | $ | 52,037 |   |
| Total                assets                                                      |                             | 619,346 |   |   | 619,333 |   |   | 611,868 |   |   | 611,785 |   |   | 533,447 |   |   | 533,532 |   |   | 540,605 |   |   | 540,584 |   |
|                                                                             |                             |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Deferred                income taxes                                             |                             | 11,290  |   |   | 11,272 |   |   | 12,070 |   |   | 12,023 |   |   | 11,466 |   |   | 11,486 |   |   | 12,597 |   |   | 12,579 |   |
| Total                liabilities                                                 |                             | 558,169 |   |   | 558,151 |   |   | 551,273 |   |   | 551,226 |   |   | 475,875 |   |   | 475,895 |   |   | 487,542 |   |   | 487,524 |   |
|                                                                             |                             |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash                flow hedges                                                  |                             | (895    | ) |   | (284 | ) |   | (997 | ) |   | (288 | ) |   | (939 | ) |   | (302 | ) |   | (813 | ) |   | (343 | ) |
| Retained                earnings                                                 |                             | 38,020  |   |   | 37,414 |   |   | 38,704 |   |   | 37,959 |   |   | 37,716 |   |   | 37,144 |   |   | 35,379 |   |   | 34,906 |   |
| Total                shareowner’s equity                                   |                             | 56,333  |   |   | 56,338 |   |   | 55,713 |   |   | 55,677 |   |   | 53,876 |   |   | 53,941 |   |   | 50,815 |   |   | 50,812 |   |
| Total                liabilities and equity                                      |                             | 619,346 |   |   | 619,333 |   |   | 611,868 |   |   | 611,785 |   |   | 533,447 |   |   | 533,532 |   |   | 540,605 |   |   | 540,584 |   |

----

|                                                                             | **2004**                         |    |
|----------------------------------------------------------------------------------|----------------------------------|---------|
|                                                                             | **First                quarter** |    | **Second                quarter** |   | **Third                quarter** |   | **Fourth                quarter** |   |
| *Quarterly                Information (unaudited)**(In                millions)* | **As****previously****reported** |    | **As****restated** |   | **As****previously****reported** |   | **As****restated** |   | **As****previously****reported** |   | **As****restated** |   | **As****previously****reported** |   | **As****restated** |   |
| **Statement                of Financial Position**                               |                             |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                             |                             |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other                assets                                                      | $                                | 43,724  |   | $ | 43,808 |   | $ | 45,397 |   | $ | 45,440 |   | $ | 47,660 |   | $ | 47,677 |   | $ | 52,572 |   | $ | 52,682 |   |
| Total                assets                                                      |                             | 567,208 |   |   | 567,292 |   |   | 569,412 |   |   | 569,455 |   |   | 577,794 |   |   | 577,811 |   |   | 618,504 |   |   | 618,614 |   |
|                                                                             |                             |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Deferred                income taxes                                             |                             | 10,837  |   |   | 10,839 |   |   | 11,176 |   |   | 11,176 |   |   | 11,830 |   |   | 11,815 |   |   | 11,669 |   |   | 11,692 |   |
| Total                liabilities                                                 |                             | 512,548 |   |   | 512,550 |   |   | 517,808 |   |   | 517,808 |   |   | 523,513 |   |   | 523,498 |   |   | 559,310 |   |   | 559,333 |   |
|                                                                             |                             |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash                flow hedges                                                  |                             | (1,609  | ) |   | (219 | ) |   | (1,028 | ) |   | (273 | ) |   | (1,281 | ) |   | (313 | ) |   | (1,354 | ) |   | (436 | ) |
| Retained                earnings                                                 |                             | 32,285  |   |   | 30,977 |   |   | 32,345 |   |   | 31,633 |   |   | 34,377 |   |   | 33,441 |   |   | 35,976 |   |   | 35,145 |   |
| Total                shareowner’s equity                                   |                             | 49,056  |   |   | 49,138 |   |   | 46,227 |   |   | 46,270 |   |   | 49,359 |   |   | 49,391 |   |   | 54,292 |   |   | 54,379 |   |
| Total                liabilities and equity                                      |                             | 567,208 |   |   | 567,292 |   |   | 569,412 |   |   | 569,455 |   |   | 577,794 |   |   | 577,811 |   |   | 618,504 |   |   | 618,614 |   |

**Accounting      principles**

**Consolidation**

**Financial      statement presentation **

**Operating      Segments **

----

**Sales      of goods **

**Revenues      from services (earned income) **

----

**Depreciation      and amortization **

**Losses      on financing receivables **

----

**Sales      of stock by affiliates**

**Cash      and equivalents **

**Investment      securities **

**Inventories      **

**Intangible      assets **

----

**Investment      contracts, insurance liabilities and insurance annuity      benefits**

**Accounting      change **

*Consolidation      of Variable Interest Entities, *

**Note      2. Discontinued Operations**

**Planned      sale of GE Insurance Solutions**

----

**Sale      of Genworth **

**Discontinued      operations**

|                                        | **Total** |   | **Genworth** |   | **GE                Insurance Solutions** |   |
|---------------------------------------------|-----------|--------|--------------|--------|-------------------------------------------|--------|
| *(In                millions)*              | **2005**  |   | **2004**     |   | **2003**                                  |   | **2005** |   | **2004** |   | **2003** |   | **2005** |   | **2004** |   | **2003** |   |
|                                        |      |   |         |   |                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Discontinued                Operations**  |      |   |         |   |                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Before                Disposal**          |      |   |         |   |                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Revenues                from services       | $         | 15,359 |         | $      | 18,773                                    |   | $ | 21,755 |   | $ | 7,908 |   | $ | 10,148 |   | $ | 11,790 |   | $ | 7,451 |   | $ | 8,625 |   | $ | 9,965 |   |
|                                        |      |   |         |   |                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Earnings                (loss) from         |      |   |         |   |                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| discontinued                operations      |      |   |         |   |                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| before                minority interest     |      |   |         |   |                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| and                income taxes             | $         | (1,748 | )            | $      | 1,479                                     |   | $ | 2,682 |   | $ | 1,388 |   | $ | 1,546 |   | $ | 2,039 |   | $ | (3,136 | ) | $ | (67 | ) | $ | 643 |   |
| Minority                interest            |      | 394    |         |   | 200                                       |   |   | 2 |   |   | 394 |   |   | 200 |   |   | 2 |   |   | - |   |   | - |   |   | - |   |
| Earnings                (loss) from         |      |   |         |   |                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| discontinued                operations      |      |   |         |   |                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| before                income taxes          |      | (2,142 | )            |   | 1,279                                     |   |   | 2,680 |   |   | 994 |   |   | 1,346 |   |   | 2,037 |   |   | (3,136 | ) |   | (67 | ) |   | 643 |   |
| Income                tax benefit (expense) |      | 602    |         |   | (409                                      | )      |   | (623 | ) |   | (618 | ) |   | (566 | ) |   | (640 | ) |   | 1,220 |   |   | 157 |   |   | 17 |   |
| Earnings                (loss) from         |      |   |         |   |                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| discontinued                operations      |      |   |         |   |                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| before                disposal,             |      |   |         |   |                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| net                of taxes                 | $         | (1,540 | )            | $      | 870                                       |   | $ | 2,057 |   | $ | 376 |   | $ | 780 |   | $ | 1,397 |   | $ | (1,916 | ) | $ | 90 |   | $ | 660 |   |
|                                        |      |   |         |   |                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Disposal**                                |      |   |         |   |                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Gain                (loss) on disposal      |      |   |         |   |                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| before                income taxes          | $         | 629    |         | $      | (570                                      | )      | $ | - |   | $ | 932 |   | $ | (570 | ) | $ | - |   | $ | (303 | ) | $ | - |   | $ | - |   |
| Income                tax benefit (expense) |      | (1,011 | )            |   | 234                                       |   |   | - |   |   | (380 | ) |   | 234 |   |   | - |   |   | (631 | ) |   | - |   |   | - |   |
| Gain                (loss) on disposal,     |      |   |         |   |                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| net                of taxes                 | $         | (382   | )            | $      | (336                                      | )      | $ | - |   | $ | 552 |   | $ | (336 | ) | $ | - |   | $ | (934 | ) | $ | - |   | $ | - |   |
|                                        |      |   |         |   |                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Earnings                (loss) from         |      |   |         |   |                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| discontinued                operations,     |      |   |         |   |                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| net                of taxes                 | $         | (1,922 | )            | $      | 534                                       |   | $ | 2,057 |   | $ | 928 |   | $ | 444 |   | $ | 1,397 |   | $ | (2,850 | ) | $ | 90 |   | $ | 660 |   |

----

|                                                       | **Total** |   | **Genworth** |   | **GE                Insurance Solutions** |   |
|------------------------------------------------------------|-----------|--------|--------------|--------|-------------------------------------------|--------|
| *December                31 (In millions)*                 | **2005**  |   | **2004**     |   | **2005**                                  |   | **2004** |   | **2005** |   | **2004** |   |
|                                                       |      |   |         |   |                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash                and equivalents                        | $         | 2,790  |         | $      | 3,176                                     |   | $ | - |   | $ | 1,407 |   | $ | 2,790 |   | $ | 1,769 |   |
| Investment                securities                       |      | 26,637 |         |   | 78,613                                    |   |   | 2,981 |   |   | 54,064 |   |   | 23,656 |   |   | 24,549 |   |
| Other                receivables                           |      | 13,480 |         |   | 25,140                                    |   |   | - |   |   | 11,684 |   |   | 13,480 |   |   | 13,456 |   |
| Other                                                      |      | 3,849  |         |   | 25,337                                    |   |   | - |   |   | 20,642 |   |   | 3,849 |   |   | 4,695 |   |
| Assets                of discontinued operations           | $         | 46,756 |         | $      | 132,266                                   |   | $ | 2,981 |   | $ | 87,797 |   | $ | 43,775 |   | $ | 44,469 |   |
|                                                       |      |   |         |   |                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Investment                contracts, insurance liabilities |      |   |         |   |                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| and                insurance annuity benefits              | $         | 31,043 |         | $      | 92,509                                    |   | $ | - |   | $ | 61,857 |   | $ | 31,043 |   | $ | 30,652 |   |
| Other                                                      |      | 5,525  |         |   | 16,784                                    |   |   | - |   |   | 11,437 |   |   | 5,525 |   |   | 5,347 |   |
| Minority                interest                           |      | -      |         |   | 3,780                                     |   |   | - |   |   | 3,780 |   |   | - |   |   | - |   |
| Liabilities                of and minority interest        |      |   |         |   |                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| in                discontinued operations                  | $         | 36,568 |         | $      | 113,073                                   |   | $ | - |   | $ | 77,074 |   | $ | 36,568 |   | $ | 35,999 |   |
|                                                       |      |   |         |   |                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Accumulated                gains (losses) - net            |      |   |         |   |                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Investment                securities                       | $         | 532    |         | $      | 869                                       |   | $ | 465 |   | $ | 707 |   | $ | 67 |   | $ | 162 |   |
| Currency                translation adjustments            |      | (48    | )            |   | 591                                       |   |   | - |   |   | 332 |   |   | (48 | ) |   | 259 |   |
| Cash                flow hedges                            |      | -      |         |   | 189                                       |   |   | - |   |   | 191 |   |   | - |   |   | (2 | ) |
| Total                accumulated nonowner changes          |      |   |         |   |                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| other                than earnings                         | $         | 484    |         | $      | 1,649                                     |   | $ | 465 |   | $ | 1,230 |   | $ | 19 |   | $ | 419 |   |

**Note      3. Revenues from Services **

| *(In                millions)*                         | **2005** |   | **2004** |   | **2003** |   |
|--------------------------------------------------------|----------|--------|----------|--------|----------|--------|
|                                                   |     |   |     |   |     |   |   |   |   |
| Interest                on loans                       | $        | 20,096 |     | $      | 17,314   |   | $ | 15,448 |   |
| Operating                lease rentals                 |     | 11,582 |     |   | 10,744   |   |   | 7,199 |   |
| Investment                income                       |     | 4,278  |     |   | 2,801    |   |   | 1,628 |   |
| Fees                                                   |     | 4,180  |     |   | 3,254    |   |   | 2,494 |   |
| Financing                leases                        |     | 3,990  |     |   | 4,160    |   |   | 4,206 |   |
| Premiums                earned by insurance activities |     | 2,951  |     |   | 2,428    |   |   | 3,432 |   |
| Other                income                            |     | 9,692  |     |   | 9,353    |   |   | 6,343 |   |
| Total(a)                                               | $        | 56,769 |     | $      | 50,054   |   | $ | 40,750 |   |
|                                                   |     |   |     |   |     |   |   |   |   |

| (a) | Included                $1,295 million, $962 million and $867 million from consolidated,                liquidating securitization entities in 2005, 2004 and 2003, respectively.                Of these amounts, $634 million in 2005 related to Australian Financial                Investments Group (AFIG), a December 2004 acquisition. |   |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|

**Note      4. Operating and Administrative Expenses**

| *(In                millions)*        | **2005** |   | **2004** |   | **2003** |   |
|---------------------------------------|----------|--------|----------|--------|----------|--------|
|                                  |     |   |     |   |     |   |
| Equipment                for sublease | $        | 385    |     | $      | 383      |   | $ | 338 |   |
| Other                rental expense   |     | 609    |     |   | 548      |   |   | 489 |   |

----

| *(In                millions)* |   |     |   |     |   |     |   |     |   |
|--------------------------------|--------|----------|--------|----------|--------|----------|--------|----------|--------|
|                           |   |     |   |     |   |     |   |     |   |
| **2006**                       |   | **2007** |   | **2008** |   | **2009** |   | **2010** |   |
| $                              | 778    |     | $      | 679      |   | $        | 582    |     | $      | 521 |   | $ | 388 |   |

**Note      5. Investment Securities**

|                                         | **Estimated                fair value** |   |
|----------------------------------------------|-----------------------------------------|--------|
| *December                31 (In millions)*   | **2005**                                |   | **2004** |   |
|                                         |                                    |   |   |   |   |   |
| Available-for-sale                securities | $                                       | 44,564 |   | $ | 48,193 |   |
| Trading                securities            |                                    | 8,142  |   |   | 8,346 |   |
| Total                                        | $                                       | 52,706 |   | $ | 56,539 |   |

**Available-for-sale      securities**

| *December                31 (In millions)*         | **Amortized****cost** |   | **Gross****unrealized****gains** |   | **Gross****unrealized****losses** |   | **Estimated****fair                value** |   |
|----------------------------------------------------|-----------------------|--------|----------------------------------|--------|-----------------------------------|--------|--------------------------------------------|--------|
|                                               |                  |   |                             |   |                              |   |                                       |   |   |   |   |   |
| **2005**                                           |                  |   |                             |   |                              |   |                                       |   |   |   |   |   |
| Debt:                                              |                  |   |                             |   |                              |   |                                       |   |   |   |   |   |
| U.S.                corporate                      | $                     | 20,578 |                             | $      | 1,317                             |   | $                                          | (339   | ) | $ | 21,556 |   |
| State                and municipal                 |                  | 810    |                             |   | 47                                |   |                                       | (2     | ) |   | 855 |   |
| Mortgage-backed(a)                                 |                  | 5,677  |                             |   | 44                                |   |                                       | (56    | ) |   | 5,665 |   |
| Asset-backed                                       |                  | 8,434  |                             |   | 205                               |   |                                       | (19    | ) |   | 8,620 |   |
| Corporate                - non-U.S.                |                  | 4,796  |                             |   | 404                               |   |                                       | (11    | ) |   | 5,189 |   |
| Government                - non-U.S.               |                  | 694    |                             |   | 92                                |   |                                       | -      |   |   | 786 |   |
| U.S.                government and federal agency  |                  | 803    |                             |   | 61                                |   |                                       | (5     | ) |   | 859 |   |
| Equity                                             |                  | 838    |                             |   | 229                               |   |                                       | (33    | ) |   | 1,034 |   |
| Total                available-for-sale securities | $                     | 42,630 |                             | $      | 2,399                             |   | $                                          | (465   | ) | $ | 44,564 | (b) |
|                                               |                  |   |                             |   |                              |   |                                       |   |   |   |   |   |
| **2004**                                           |                  |   |                             |   |                              |   |                                       |   |   |   |   |   |
| Debt:                                              |                  |   |                             |   |                              |   |                                       |   |   |   |   |   |
| U.S.                corporate                      | $                     | 22,703 |                             | $      | 1,596                             |   | $                                          | (362   | ) | $ | 23,937 |   |
| State                and municipal                 |                  | 802    |                             |   | 63                                |   |                                       | -      |   |   | 865 |   |
| Mortgage-backed(a)                                 |                  | 5,983  |                             |   | 78                                |   |                                       | (25    | ) |   | 6,036 |   |
| Asset-backed                                       |                  | 7,610  |                             |   | 251                               |   |                                       | (46    | ) |   | 7,815 |   |
| Corporate                - non-U.S.                |                  | 5,309  |                             |   | 405                               |   |                                       | (7     | ) |   | 5,707 |   |
| Government                - non-U.S.               |                  | 1,423  |                             |   | 100                               |   |                                       | -      |   |   | 1,523 |   |
| U.S.                government and federal agency  |                  | 759    |                             |   | 59                                |   |                                       | (1     | ) |   | 817 |   |
| Equity                                             |                  | 1,194  |                             |   | 314                               |   |                                       | (15    | ) |   | 1,493 |   |
| Total                available-for-sale securities | $                     | 45,783 |                             | $      | 2,866                             |   | $                                          | (456   | ) | $ | 48,193 | (b) |
|                                               |                  |   |                             |   |                              |   |                                       |   |   |   |   |   |

| (a)  | Substantially                collateralized by U.S. residential mortgages.                                                                                                                                 |   |
|-----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| (b)       | Included                $16 million in 2005 and $684 million in 2004 of debt securities related                to                consolidated, liquidating securitization entities. See note                19. |   |

----

|                                              | **Less                than 12 months**     |   | **12                months or more** |   |
|---------------------------------------------------|--------------------------------------------|--------|--------------------------------------|--------|
| *December                31 (In millions)*        | **Estimated****fair                value** |   | **Gross****unrealized****losses**    |   | **Estimated****fair                value** |   | **Gross****unrealized****losses** |   |
|                                              |                                       |   |                                 |   |   |   |   |   |   |   |   |   |
| **2005**                                          |                                       |   |                                 |   |   |   |   |   |   |   |   |   |
| Debt:                                             |                                       |   |                                 |   |   |   |   |   |   |   |   |   |
| U.S.                corporate                     | $                                          | 3,640  |                                 | $      | (131 | ) | $ | 2,584 |   | $ | (208 | ) |
| State                and municipal                |                                       | 77     |                                 |   | (2 | ) |   | - |   |   | - |   |
| Mortgage-backed                                   |                                       | 1,859  |                                 |   | (22 | ) |   | 1,190 |   |   | (34 | ) |
| Asset-backed                                      |                                       | 1,495  |                                 |   | (10 | ) |   | 383 |   |   | (9 | ) |
| Corporate                - non-U.S.               |                                       | 286    |                                 |   | (9 | ) |   | 73 |   |   | (2 | ) |
| U.S.                government and federal agency |                                       | 297    |                                 |   | (5 | ) |   | - |   |   | - |   |
| Equity                                            |                                       | 76     |                                 |   | (24 | ) |   | 31 |   |   | (9 | ) |
| Total                                             | $                                          | 7,730  |                                 | $      | (203 | ) | $ | 4,261 |   | $ | (262 | ) |
|                                              |                                       |   |                                 |   |   |   |   |   |   |   |   |   |
| **2004**                                          |                                       |   |                                 |   |   |   |   |   |   |   |   |   |
| Debt:                                             |                                       |   |                                 |   |   |   |   |   |   |   |   |   |
| U.S.                corporate                     | $                                          | 3,198  |                                 | $      | (88 | ) | $ | 1,346 |   | $ | (274 | ) |
| Mortgage-backed                                   |                                       | 2,465  |                                 |   | (19 | ) |   | 197 |   |   | (6 | ) |
| Asset-backed                                      |                                       | 1,586  |                                 |   | (15 | ) |   | 429 |   |   | (31 | ) |
| Corporate                - non-U.S.               |                                       | 2,512  |                                 |   | (2 | ) |   | 168 |   |   | (5 | ) |
| U.S.                government and federal agency |                                       | 116    |                                 |   | (1 | ) |   | - |   |   | - |   |
| Equity                                            |                                       | 135    |                                 |   | (13 | ) |   | 32 |   |   | (2 | ) |
| Total                                             | $                                          | 10,012 |                                 | $      | (138 | ) | $ | 2,172 |   | $ | (318 | ) |

----

**Contractual      Maturities of our Investment in Available-for-Sale Debt Securities (Excluding      Mortgage-Backed and Asset-Backed Securities)**

| *(In                millions)* | **Amortized****cost** |   | **Estimated****fair                value** |   |
|--------------------------------|-----------------------|--------|--------------------------------------------|--------|
|                           |                  |   |                                       |   |   |   |
| Due                in          |                  |   |                                       |   |   |   |
| 2006                           | $                     | 2,447  |                                       | $      | 2,444 |   |
| 2007-2010                      |                  | 4,603  |                                       |   | 4,601 |   |
| 2011-2015                      |                  | 4,786  |                                       |   | 4,874 |   |
| 2016                and later  |                  | 15,845 |                                       |   | 17,326 |   |

| *(In                millions)*               | **2005** |   | **2004** |   | **2003** |   |
|----------------------------------------------|----------|--------|----------|--------|----------|--------|
|                                         |     |   |     |   |     |   |   |   |   |
| Gains                                        | $        | 514    |     | $      | 413      |   | $ | 522 |   |
| Losses,                including impairments |     | (133   | )        |   | (209     | )      |   | (317 | ) |
| Net                                          | $        | 381    |     | $      | 204      |   | $ | 205 |   |

**Trading      securities**

**Note      6. Financing Receivables (investments in loans and financing      leases)**

| *December                31 (In millions)*                            | **2005** |    | **2004** |   |
|-----------------------------------------------------------------------|----------|---------|----------|--------|
|                                                                  |     |    |     |   |   |   |
| Loans,                net of deferred income                          | $        | 227,923 |     | $      | 220,593 |   |
| Investment                in financing leases, net of deferred income |     | 64,309  |     |   | 67,754 |   |
|                                                                  |     | 292,232 |     |   | 288,347 |   |
| Less                allowance for losses (note 7)                     |     | (4,593  | )        |   | (5,648 | ) |
| Financing                receivables - net                            | $        | 287,639 |     | $      | 282,699 |   |

----

| *December                31 (In millions)*                            | **2005** |   | **2004** |   |
|-----------------------------------------------------------------------|----------|--------|----------|--------|
|                                                                  |     |   |     |   |   |   |
| Loans,                net of deferred income                          | $        | 15,868 |     | $      | 20,728 |   |
| Investment                in financing leases, net of deferred income |     | 769    |     |   | 2,125 |   |
|                                                                  |     | 16,637 |     |   | 22,853 |   |
| Less                allowance for losses                              |     | (22    | )        |   | (5 | ) |
| Financing                receivables - net                            | $        | 16,615 |     | $      | 22,848 |   |

| *December                31 (In millions)*               | **2005** |    | **2004** |   |
|----------------------------------------------------------|----------|---------|----------|--------|
|                                                     |     |    |     |   |   |   |
| **GE                Commercial Finance**                 |     |    |     |   |   |   |
| Equipment                and leasing                     | $        | 70,851  |     | $      | 64,540 |   |
| Commercial                and industrial                 |     | 41,402  |     |   | 39,481 |   |
| Real                estate                               |     | 19,555  |     |   | 20,470 |   |
|                                                     |     | 131,808 |     |   | 124,491 |   |
|                                                     |     |    |     |   |   |   |
| **GE                Consumer Finance**                   |     |    |     |   |   |   |
| Non-U.S.                residential mortgages            |     | 46,205  |     |   | 42,201 |   |
| Non-U.S.                installment and revolving credit |     | 31,849  |     |   | 33,889 |   |
| Non-U.S.                auto                             |     | 22,803  |     |   | 23,517 |   |
| U.S.                installment and revolving credit     |     | 21,963  |     |   | 21,385 |   |
| Other                                                    |     | 7,286   |     |   | 6,771 |   |
|                                                     |     | 130,106 |     |   | 127,763 |   |
|                                                     |     |    |     |   |   |   |
| **GE                Infrastructure**(a)(b)               |     | 19,124  |     |   | 20,991 |   |
|                                                     |     |    |     |   |   |   |
| **Other**(c)                                             |     | 11,194  |     |   | 15,102 |   |
|                                                     |     | 292,232 |     |   | 288,347 |   |
| Less                allowance for losses                 |     | (4,593  | )        |   | (5,648 | ) |
| Total                                                    | $        | 287,639 |     | $      | 282,699 |   |
|                                                     |     |    |     |   |   |   |

| (a)   | Included                loans and financing leases of $11,192 million and $13,562 million                at                December 31, 2005 and 2004, respectively, related to commercial aircraft                at Aviation Financial Services and loans and financing leases of                $5,419                million and $4,659 million at December 31, 2005 and 2004, respectively,                related to Energy Financial Services.  |   |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| (b)        | Included                only portions of the segment that are financial services                businesses.                                                                                                                                                                                                                                                                                                                                            |   |
| (c)             | Included                loans and financing leases of $10,160 million and $13,759 million                at                December 31, 2005 and 2004, respectively, related to certain consolidated,                liquidating securitization entities.                                                                                                                                                                                                   |   |

----

**Net      Investment in Financing Leases**

|                                              | **Total                financing leases** |    | **Direct                financing leases**(a) |   | **Leveraged                leases**(b) |   |
|---------------------------------------------------|-------------------------------------------|---------|-----------------------------------------------|--------|----------------------------------------|--------|
| *December                31 (In millions)*        | **2005**                                  |    | **2004**                                      |   | **2005**                               |   | **2004** |   | **2005** |   | **2004** |   |
|                                              |                                      |    |                                          |   |                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                minimum lease payments       |                                      |    |                                          |   |                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| receivable                                        | $                                         | 86,436  |                                          | $      | 91,840                                 |   | $ | 60,594 |   | $ | 63,733 |   | $ | 25,842 |   | $ | 28,107 |   |
| Less                principal and interest on     |                                      |    |                                          |   |                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| third-party                nonrecourse debt       |                                      | (19,061 | )                                             |   | (20,992                                | )      |   | - |   |   | - |   |   | (19,061 | ) |   | (20,992 | ) |
| Net                rentals receivable             |                                      | 67,375  |                                          |   | 70,848                                 |   |   | 60,594 |   |   | 63,733 |   |   | 6,781 |   |   | 7,115 |   |
| Estimated                unguaranteed residual    |                                      |    |                                          |   |                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| value                of leased assets             |                                      | 9,379   |                                          |   | 10,323                                 |   |   | 6,260 |   |   | 6,898 |   |   | 3,119 |   |   | 3,425 |   |
| Less                deferred income               |                                      | (12,445 | )                                             |   | (13,417                                | )      |   | (9,305 | ) |   | (9,966 | ) |   | (3,140 | ) |   | (3,451 | ) |
| Investment                in financing leases,    |                                      |    |                                          |   |                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| net                of deferred income             |                                      | 64,309  |                                          |   | 67,754                                 |   |   | 57,549 |   |   | 60,665 |   |   | 6,760 |   |   | 7,089 |   |
| Less                amounts to arrive at net      |                                      |    |                                          |   |                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| investment                                        |                                      |    |                                          |   |                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Allowance                for losses               |                                      | (525    | )                                             |   | (1,090                                 | )      |   | (380 | ) |   | (903 | ) |   | (145 | ) |   | (187 | ) |
| Deferred                taxes                     |                                      | (8,037  | )                                             |   | (9,767                                 | )      |   | (3,495 | ) |   | (5,099 | ) |   | (4,542 | ) |   | (4,668 | ) |
| Net                investment in financing leases | $                                         | 55,747  |                                          | $      | 56,897                                 |   | $ | 53,674 |   | $ | 54,663 |   | $ | 2,073 |   | $ | 2,234 |   |
|                                              |                                      |

| (a)   | Included                $475 million and $489 million of initial direct costs on direct financing                leases at December 31, 2005 and 2004, respectively.                                                                                                                           |   |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| (b)             | Included                pre-tax income of $248 million and $340 million and income tax of                $96                million and $131 million during 2005 and 2004, respectively. Net                investment credits recognized during 2005 and 2004 were                inconsequential. |   |

**Contractual      Maturities**

| *(In                millions)* | **Total****loans** |    | **Net                rentals****receivable** |   |
|--------------------------------|--------------------|---------|----------------------------------------------|--------|
|                           |               |    |                                         |   |   |   |
| Due                in          |               |    |                                         |   |   |   |
| 2006                           | $                  | 74,232  |                                         | $      | 17,812 |   |
| 2007                           |               | 30,610  |                                         |   | 14,320 |   |
| 2008                           |               | 23,696  |                                         |   | 10,756 |   |
| 2009                           |               | 13,812  |                                         |   | 7,261 |   |
| 2010                           |               | 14,306  |                                         |   | 4,164 |   |
| 2011                and later  |               | 71,267  |                                         |   | 13,062 |   |
| Total                          | $                  | 227,923 |                                         | $      | 67,375 |   |

----

| *December                31 (In millions)*              | **2005** |   | **2004** |   |
|---------------------------------------------------------|----------|--------|----------|--------|
|                                                    |     |   |     |   |
| Loans                requiring allowance for losses     | $        | 1,479  |     | $      | 1,689 |   |
| Loans                expected to be fully recoverable   |     | 451    |     |   | 520 |   |
|                                                    | $        | 1,930  |     | $      | 2,209 |   |
|                                                    |     |   |     |   |   |   |
| Allowance                for losses                     | $        | 627    |     | $      | 749 |   |
| Average                investment during year           |     | 2,118  |     |   | 2,403 |   |
| Interest                income earned while impaired(a) |     | 46     |     |   | 26 |   |
|                                                    |     |   |     |   |   |   |

| (a)  | Recognized                principally on cash basis. |   |
|-----------|------------------------------------------------------|--------|

**Note      7. Allowance for Losses on Financing Receivables**

| *(In                millions)*                     | **2005** |   | **2004** |   | **2003** |   |
|----------------------------------------------------|----------|--------|----------|--------|----------|--------|
|                                               |     |   |     |   |     |   |
| **Balance                at January 1**            |     |   |     |   |     |   |   |   |   |
| GE                Commercial Finance               | $        | 1,562  |     | $      | 1,952    |   | $ | 2,407 |   |
| GE                Consumer Finance                 |     | 3,473  |     |   | 3,984    |   |   | 2,782 |   |
| GE                Infrastructure(a)                |     | 583    |     |   | 293      |   |   | 258 |   |
| Other                                              |     | 30     |     |   | 27       |   |   | 53 |   |
|                                               |     | 5,648  |     |   | 6,256    |   |   | 5,500 |   |
|                                               |     |   |     |   |     |   |   |   |   |
| **Provision                charged to operations** |     |   |     |   |     |   |   |   |   |
| GE                Commercial Finance               |     | 293    |     |   | 327      |   |   | 874 |   |
| GE                Consumer Finance                 |     | 3,337  |     |   | 3,219    |   |   | 2,808 |   |
| GE                Infrastructure(a)                |     | 210    |     |   | 325      |   |   | 28 |   |
| Other                                              |     | 1      |     |   | 17       |   |   | 42 |   |
|                                               |     | 3,841  |     |   | 3,888    |   |   | 3,752 |   |
|                                               |     |   |     |   |     |   |   |   |   |
| **Other                additions (reductions)**    |     | (487   | )        |   | (74      | )      |   | 679 |   |
|                                               |     |   |     |   |     |   |   |   |   |
| **Gross                write-offs**                |     |   |     |   |     |   |   |   |   |
| GE                Commercial Finance               |     | (892   | )        |   | (928     | )      |   | (1,312 | ) |
| GE                Consumer Finance(b)              |     | (4,447 | )        |   | (4,423   | )      |   | (3,114 | ) |
| GE                Infrastructure(a)                |     | (572   | )        |   | (27      | )      |   | (24 | ) |
| Other                                              |     | (48    | )        |   | (74      | )      |   | (73 | ) |
|                                               |     | (5,959 | )        |   | (5,452   | )      |   | (4,523 | ) |

----

| *(In                millions)*            | **2005** |   | **2004** |   | **2003** |   |
|-------------------------------------------|----------|--------|----------|--------|----------|--------|
|                                      |     |   |     |   |     |   |   |   |   |
| **Recoveries**                            |     |   |     |   |     |   |   |   |   |
| GE                Commercial Finance      |     | 180    |     |   | 161      |   |   | 124 |   |
| GE                Consumer Finance        |     | 1,359  |     |   | 846      |   |   | 710 |   |
| GE                Infrastructure(a)       |     | -      |     |   | 2        |   |   | 2 |   |
| Other                                     |     | 11     |     |   | 21       |   |   | 12 |   |
|                                      |     | 1,550  |     |   | 1,030    |   |   | 848 |   |
|                                      |     |   |     |   |     |   |   |   |   |
| **Balance                at December 31** |     |   |     |   |     |   |   |   |   |
| GE                Commercial Finance      |     | 1,110  |     |   | 1,562    |   |   | 1,952 |   |
| GE                Consumer Finance        |     | 3,234  |     |   | 3,473    |   |   | 3,984 |   |
| GE                Infrastructure(a)       |     | 220    |     |   | 583      |   |   | 293 |   |
| Other                                     |     | 29     |     |   | 30       |   |   | 27 |   |
| Total                                     | $        | 4,593  |     | $      | 5,648    |   | $ | 6,256 |   |
|                                      |     |   |     |   |     |   |   |   |   |

| (a)  | Included                only portions of the segment that are financial services                businesses.    |   |
|-----------|---------------------------------------------------------------------------------------------------------------------|--------|
| (b)       | Included                $889 million in 2004 related to the standardization of our write-off                policy. |   |

**Selected      Financing Receivables Ratios**

| *December                31*                                                                        | **2005** |   |   | **2004** |   |
|-----------------------------------------------------------------------------------------------------|----------|--------|--------|----------|--------|
|                                                                                                |     |   |   |     |   |
| **Allowance                for losses on financing receivables as a percentage of total financing** |     |   |   |     |   |
| **receivables**                                                                                     |     |   |   |     |   |
| GE                Commercial Finance                                                                | 0.84     | %      |   | 1.25     | %      |
| GE                Consumer Finance                                                                  | 2.49     |   |   | 2.72     |   |
| GE                Infrastructure(a)                                                                 | 1.15     |   |   | 2.78     |   |
| Other                                                                                               | 0.26     |   |   | 0.20     |   |
| Total                                                                                               | 1.57     |   |   | 1.96     |   |
|                                                                                                |     |   |   |     |   |
| **Nonearning                and reduced earning financing receivables as a percentage of total**    |     |   |   |     |   |
| **financing                receivables**                                                            |     |   |   |     |   |
| GE                Commercial Finance                                                                | 1.0      | %      |   | 1.1      | %      |
| GE                Consumer Finance                                                                  | 2.1      |   |   | 2.0      |   |
| GE                Infrastructure(a)                                                                 | 0.1      |   |   | 0.8      |   |
| Other                                                                                               | 0.7      |   |   | 1.2      |   |
| Total                                                                                               | 1.4      |   |   | 1.5      |   |
|                                                                                                |     |   |   |     |   |

| (a) | Included                only portions of the segment that are financial services                businesses. |
|-----|-------------------------------------------------------------------------------------------------------------|

----

**Note      8. Buildings and Equipment**

| *December                31 (Dollars in millions)* | Estimatedusefullives-new(years) |   | **2005** |   | **2004** |   |
|----------------------------------------------------|---------------------------------|--------|----------|--------|----------|--------|
|                                               |                            |   |     |   |     |   |   |   |
| **Original                cost**(a)                |                            |   |     |   |     |   |   |   |
| Buildings                and equipment             | 2-40                            |   | $        | 5,547  |     | $      | 5,684 |   |
| Equipment                leased to others          |                            |   |     |   |     |   |   |   |
| Aircraft                                           | 20                              |   |     | 32,941 |     |   | 26,837 |   |
| Vehicles                                           | 1-14                            |   |     | 23,208 |     |   | 23,056 |   |
| Railroad                rolling stock              | 3-30                            |   |     | 3,327  |     |   | 3,390 |   |
| Mobile                and modular space            | 12-18                           |   |     | 2,889  |     |   | 2,965 |   |
| Construction                and manufacturing      | 5-25                            |   |     | 1,609  |     |   | 1,772 |   |
| All                other                           | 2-33                            |   |     | 2,834  |     |   | 3,021 |   |
| Total                                              |                            |   | $        | 72,355 |     | $      | 66,725 |   |
|                                               |                            |   |     |   |     |   |   |   |
| **Net                carrying value**(a)           |                            |   |     |   |     |   |   |   |
| Buildings                and equipment             |                            |   | $        | 3,116  |     | $      | 3,295 |   |
| Equipment                leased to others          |                            |   |     |   |     |   |   |   |
| Aircraft(b)                                        |                            |   |     | 27,116 |     |   | 21,991 |   |
| Vehicles                                           |                            |   |     | 14,064 |     |   | 14,062 |   |
| Railroad                rolling stock              |                            |   |     | 2,188  |     |   | 2,193 |   |
| Mobile                and modular space            |                            |   |     | 1,496  |     |   | 1,636 |   |
| Construction                and manufacturing      |                            |   |     | 1,088  |     |   | 1,157 |   |
| All                other                           |                            |   |     | 1,956  |     |   | 2,013 |   |
| Total                                              |                            |   | $        | 51,024 |     | $      | 46,347 |   |
|                                               |                            |   |     |   |     |   |   |   |

| (a)  | Included                $1,935 million and $2,243 million of original cost of assets leased                to GE                with accumulated amortization of $298 million and $377 million at                December                31, 2005 and 2004, respectively.                                                                                                                                                          |   |
|-----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| (b)       | The                Aviation Financial Services business of GE Infrastructure recognized                impairment losses of $295 million in 2005 and $148 million in 2004                recorded in the caption “Depreciation and amortization” in the Statement                of Earnings to reflect adjustments to fair value based on current                market                values from independent appraisers. |   |

| *(In                millions)* |   |   |   |
|--------------------------------|--------|--------|--------|
|                           |   |   |   |
| Due                in          |   |   |   |
| 2006                           | $      | 7,615  |   |
| 2007                           |   | 6,099  |   |
| 2008                           |   | 4,743  |   |
| 2009                           |   | 3,375  |   |
| 2010                           |   | 2,642  |   |
| 2011                and later  |   | 7,840  |   |
| Total                          | $      | 32,314 |   |

----

**Note      9. Intangible Assets**

| *December                31 (In millions)*               | **2005** |   | **2004** |   |
|----------------------------------------------------------|----------|--------|----------|--------|
|                                                     |     |   |     |   |   |   |
| Goodwill                                                 | $        | 21,337 |     | $      | 21,590 |   |
| Intangible                assets subject to amortization |     | 2,550  |     |   | 2,146 |   |
| Total                                                    | $        | 23,887 |     | $      | 23,736 |   |

|                                            | **2005**                        |   |
|-------------------------------------------------|---------------------------------|--------|
| *(In                millions)*                  | **GE****Commercial****Finance** |   | **GE****Consumer****Finance** |   | **GE****Industrial**(a) |   | **GE****Infrastructure**(a) |   |   | **Total** |   |
|                                            |                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance                January 1                | $                               | 10,141 |   |   | $ | 9,860 |   |   | $ | 1,459 |   |   | $ | 130 |   |   | $ | 21,590 |   |
| Acquisitions/purchase                accounting |                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| adjustments                                     |                            | 766    |   |   |   | (24 | ) |   |   | (2 | ) |   |   | (4 | ) |   |   | 736 |   |
| Currency                exchange and other      |                            | (286   | ) |   |   | (652 | ) |   |   | (51 | ) |   |   | - |   |   |   | (989 | ) |
| Balance                December 31              | $                               | 10,621 |   |   | $ | 9,184 |   |   | $ | 1,406 |   |   | $ | 126 |   |   | $ | 21,337 |   |

|                                            | **2004**                        |   |
|-------------------------------------------------|---------------------------------|--------|
| *(In                millions)*                  | **GE****Commercial****Finance** |   | **GE****Consumer****Finance** |   | **GE****Industrial**(a) |   | **GE****Infrastructure**(a) |   |   | **Total** |   |
|                                            |                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance                January 1                | $                               | 9,145  |   |   | $ | 8,163 |   |   | $ | 380 |   |   | $ | 114 |   |   | $ | 17,802 |   |
| Acquisitions/purchase                accounting |                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| adjustments                                     |                            | 929    |   |   |   | 1,275 |   |   |   | (11 | ) |   |   | 9 |   |   |   | 2,202 |   |
| Currency                exchange and other      |                            | 67     |   |   |   | 422 |   |   |   | 1,090 | (b) |   |   | 7 |   |   |   | 1,586 |   |
| Balance                December 31              | $                               | 10,141 |   |   | $ | 9,860 |   |   | $ | 1,459 |   |   | $ | 130 |   |   | $ | 21,590 |   |
|                                            |                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

| (a)  | Included                only portions of the segment that are financial services                businesses.                         |   |
|-----------|------------------------------------------------------------------------------------------------------------------------------------------|--------|
| (b)       | Included                $1,055 million of goodwill associated with the consolidation of Penske                effective January 1, 2004. |   |

----

**Intangible      Assets Subject to Amortization**

|                                       | **2005**                        |   | **2004**                        |   |
|--------------------------------------------|---------------------------------|--------|---------------------------------|--------|
| *December                31 (In millions)* | **Gross****carrying****amount** |   | **Accumulated****amortization** |   | **Net** |   | **Gross****carrying****amount** |   | **Accumulated****amortization** |   | **Net** |   |
|                                       |                            |   |                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Capitalized                software        | $                               | 1,478  |                            |   | $ | (799 | ) |   | $ | 679 |   | $ | 1,268 |   |   | $ | (672 | ) |   | $ | 596 |   |
| Patents,                licenses and       |                            |   |                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| trademarks                                 |                            | 497    |                            |   |   | (272 | ) |   |   | 225 |   |   | 438 |   |   |   | (226 | ) |   |   | 212 |   |
| All                other                   |                            | 2,661  |                            |   |   | (1,015 | ) |   |   | 1,646 |   |   | 2,226 |   |   |   | (888 | ) |   |   | 1,338 |   |
| Total                                      | $                               | 4,636  |                            |   | $ | (2,086 | ) |   | $ | 2,550 |   | $ | 3,932 |   |   | $ | (1,786 | ) |   | $ | 2,146 |   |

**Note      10. Other Assets**

| *December                31 (In millions)* | **2005****(Restated)** |   | **2004****(Restated)** |   |
|--------------------------------------------|------------------------|--------|------------------------|--------|
|                                       |                   |   |                   |   |   |   |
| Investments                                |                   |   |                   |   |   |   |
| Associated                companies        | $                      | 13,481 |                   | $      | 10,644 |   |
| Real                estate(a)              |                   | 16,467 |                   |   | 19,163 |   |
| Assets                held for sale(b)     |                   | 8,574  |                   |   | 6,501 |   |
| Cost                method(c)              |                   | 2,280  |                   |   | 2,392 |   |
| Other                                      |                   | 3,072  |                   |   | 3,876 |   |
|                                       |                   | 43,874 |                   |   | 42,576 |   |
|                                       |                   |   |                   |   |   |   |
| Deferred                acquisition costs  |                   | 1,541  |                   |   | 1,619 |   |
| Derivative                instruments      |                   | 1,601  |                   |   | 3,162 |   |
| Advances                to suppliers       |                   | 1,762  |                   |   | 1,754 |   |
| Other                                      |                   | 3,259  |                   |   | 3,571 |   |
| Total(d)                                   | $                      | 52,037 |                   | $      | 52,682 |   |
|                                       |                   |   |                   |   |   |   |

| (a)  | Our                investment in real estate consisted principally of two categories:                real                estate held for investment and equity method investments. Both categories                contained a wide range of properties including the following at December                31, 2005: office buildings (52%), apartment buildings (20%), retail                facilities (7%), industrial properties (6%), parking facilities (5%),                franchise properties (3%) and other (7%). At December 31, 2005,                investments were located in Europe (46%), North America (35%) and                Asia                (19%).                                                                                                                                                                                                                                                      |   |
|-----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| (b)  | Assets                were classified as held for sale on the date a decision was made                to                dispose of them through sale, securitization or other means. Such                assets                consisted primarily of real estate properties and mortgage and credit                card                receivables, and were accounted for at the lower of carrying amount                or                estimated fair value less costs to sell.                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |
| (c)  | The                fair value of and unrealized loss on those investments in a continuous                loss position for less than 12 months in 2005 were $100 million and                $31                million, respectively. The fair value of and unrealized loss on those                investments in a continuous loss position for 12 months or more in                2005                were $22 million and $9 million, respectively. The fair value of                and                unrealized loss on those investments in a continuous loss position                for                less than 12 months in 2004 were $56 million and $25 million,                respectively. The fair value of and unrealized loss on those investments                in a continuous loss position for 12 months or more in 2004 were                $55                million and $42 million, respectively.  |   |
| (d)       | Included                $1,235 million in 2005 and $2,384 million in 2004 related to consolidated,                liquidating securitization entities. See note 19.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |

----

**Note      11. Borrowings**

**Short-Term      Borrowings**

|                                                   | **2005** |    | **2004**     |   |
|--------------------------------------------------------|----------|---------|--------------|--------|
| *December                31 (Dollars in millions)*     | Amount   |    | Averagerate  | (a)    | Amount |   | Averagerate | (a) |
|                                                   |     |    |         |   |   |   |   |   |
| Commercial                paper                        |     |    |    |   |   |   |   |   |   |   |
| U.S.                                                   |     |    |         |   |   |   |   |   |   |   |
| Unsecured                                              | $        | 67,643  |         | 4.30   | % | $ | 62,195 |   | 2.24 | % |
| Asset-backed(b)                                        |     | 9,267   |         | 4.21   |   |   | 13,842 |   | 2.17 |   |
| Non-U.S.                                               |     | 20,456  |         | 3.47   |   |   | 20,835 |   | 2.97 |   |
| Current                portion of long-term debt(c)(d) |     | 41,792  |         | 4.05   |   |   | 37,530 |   | 4.11 |   |
| Other                                                  |     | 18,514  |         |   |   |   | 19,890 |   |   |   |
| Total                                                  | $        | 157,672 |         |   |   | $ | 154,292 |   |   |   |
|                                                   |     |    |         |   |   |   |   |   |

| (a)  | Based                on year-end balances and year-end local currency interest rates.                Current                portion of long-term debt included the effects of interest rate and                currency swaps, if any, directly associated with the original debt                issuance.   |
|-----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (b)  | Entirely                obligations of consolidated, liquidating securitization entities.                See note                19.                                                                                                                                                                         |
| (c)       | Included                short-term borrowings by consolidated, liquidating securitization                entities                of $697 million and $756 million at December 31, 2005 and 2004,                respectively. See note 19.                                                                   |
| (d)       | Included                $250 million of subordinated notes guaranteed by GE at December 31,                2005.                                                                                                                                                                                                  |

**Long-Term      Borrowings**

|                                               |  2005  |   |       |    |
|----------------------------------------------------|-------------|--------|------------|---------|
| *December                31 (Dollars in millions)* | Averagerate | (a)    | Maturities |    | **2005** |   | **2004** |   |
|                                               |        |   |       |    |   |   |   |   |
| Senior                notes                        |        |   |       |    |   |   |   |   |   |   |
| Unsecured                                          | 4.45        | %      | 2007-2055  |    | $ | 180,546 |   | $ | 174,893 |   |
| Asset-backed(b)                                    | 4.66        |   | 2007-2035  |    |   | 6,845 |   |   | 10,939 |   |
| Extendible                notes(c)                 | 4.38        |   | 2007-2009  |    |   | 14,022 |   |   | 14,258 |   |
| Subordinated                notes(d)               | 6.00        |   | 2009-2037  |    |   | 2,984 |   |   | 1,119 |   |
| Total                                              |        |   | $          | 204,397 |   | $ | 201,209 |   |
|                                               |        |   |       |    |   |   |   |   |

| (a)  | Based                on year-end balances and year-end local currency interest rates,                including                the effects of interest rate and currency swaps, if any, directly                associated with the original debt issuance.  |
|-----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (b)  | Asset-backed                senior notes were all issued by consolidated, liquidating securitization                entities. See note 19.                                                                                                                  |
| (c)  | Included                obligations of consolidated, liquidating securitization entities                in the                amount of $38 million and $267 million at December 31, 2005 and 2004,                respectively. See note 19.               |
| (d)       | Included                $750 million and $1,000 million of subordinated notes guaranteed                by GE at                December 31, 2005 and 2004,                respectively.                                                                         |

----

**Liquidity      **

| *(In                millions)* |   |     |   |     |   |     |   |     |   |
|--------------------------------|--------|----------|--------|----------|--------|----------|--------|----------|--------|
|                           |   |     |   |     |   |     |   |     |   |
| **2006**                       |   | **2007** |   | **2008** |   | **2009** |   | **2010** |   |
|                           |   |     |   |     |   |     |   |     |   |
| $                              | 41,792 | (a)      | $      | 41,409   | (b)    | $        | 42,512 |     | $      | 26,994 |   | $ | 18,647 |   |
|                           |   |     |   |     |   |     |   |     |   |   |   |   |   |   |

| (a)  | Floating                rate extendible notes of $297 million are due in 2006, but are extendible                at the option of the investors to a final maturity in 2008. Fixed                and                floating rate notes of $1,059 million contain put options with exercise                dates in 2006, but have final maturity dates in 2007 ($250 million),                2008                ($350 million) and beyond 2010 ($459 million).  |   |
|-----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| (b)       | Floating                rate extendible notes of $14,022 million are due in 2007, of which                $2,000                million are extendible at the option of the investors to a final                maturity                in 2009.                                                                                                                                                                                                                         |   |

**Interest      rate and currency risk**

**Effective      Borrowings (Including Swaps) (Restated)**

|                                                 | **2005** |    | **2004**    |   |
|------------------------------------------------------|----------|---------|-------------|--------|
| *December                31 (Dollars in millions)*   | Amount   |    | Averagerate |   | Amount |   |
|                                                 |     |    |        |   |   |   |   |   |
| Short-term(a)                                        | $        | 115,880 |        | 3.99   | % | $ | 116,762 |   |
| Long-term                (including current portion) |     |    |        |   |   |   |   |   |
| Fixed                rate                            | $        | 145,428 |        | 4.51   | % | $ | 134,259 |   |
| Floating                rate                         |     | 100,761 |        | 4.29   |   |   | 104,480 |   |
| Total                long-term                       | $        | 246,189 |        |   |   | $ | 238,739 |   |
|                                                 |     |    |        |   |   |   |   |   |

| (a) | Included                commercial paper and other short-term debt. |   |
|-----|---------------------------------------------------------------------|--------|

----

*Accounting      for Derivative Instruments and Hedging Activities*

**Derivative      Fair Values by Activity/Instrument (Restated)**

| *December                31 (In millions)* | **2005** |   | **2004** |   |
|--------------------------------------------|----------|--------|----------|--------|
|                                       |     |   |     |   |   |   |
| Cash                flow hedges            | $        | 726    |     | $      | 254 |   |
| Fair                value hedges           |     | (39    | )        |   | 1,864 |   |
| Total                                      | $        | 687    |     | $      | 2,118 |   |
|                                       |     |   |     |   |   |   |
| Interest                rate swaps         | $        | (423   | )        | $      | (76 | ) |
| Currency                swaps              |     | 1,110  |     |   | 2,194 |   |
| Total                                      | $        | 687    |     | $      | 2,118 |   |

**Note      12. Investment Contracts, Insurance Liabilities and Insurance Annuity      Benefits**

| *December                31 (In millions)*                  | **2005** |   | **2004** |   |
|-------------------------------------------------------------|----------|--------|----------|--------|
|                                                        |     |   |     |   |
| Investment                contracts                         | $        | 16,039 |     | $      | 18,268 |   |
| Guaranteed                investment contracts of SPEs      |     | 11,685 |     |   | 11,648 |   |
| Total                investment contracts                   |     | 27,724 |     |   | 29,916 |   |
|                                                        |     |   |     |   |   |   |
| Life                insurance benefits(a)                   |     | 15,538 |     |   | 15,398 |   |
| Unpaid                claims and claims adjustment expenses |     | 1,690  |     |   | 1,729 |   |
| Unearned                premiums                            |     | 430    |     |   | 405 |   |
| Universal                life benefits                      |     | 340    |     |   | 945 |   |
| Total                                                       | $        | 45,722 |     | $      | 48,393 |   |
|                                                        |     |   |     |   |   |   |

| (a)  | Life                insurance benefits are accounted for mainly by a net-level-premium                method                using estimated yields generally ranging from 3.0% to 8.5% in both                2005                and 2004.  |   |
|-----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|

----

**Note      13. Income Taxes (Restated)**

| *(In                millions)*                                           | **2005** |   | **2004** |   | **2003** |   |
|--------------------------------------------------------------------------|----------|--------|----------|--------|----------|--------|
|                                                                     |     |   |     |   |     |   |
| Current                tax expense                                       | $        | 1,938  |     | $      | 1,510    |   | $ | 171 |   |
| Deferred                tax expense (benefit) from temporary differences |     | (603   | )        |   | 225      |   |   | 1,028 |   |
|                                                                     | $        | 1,335  |     | $      | 1,735    |   | $ | 1,199 |   |

----

**Reconciliation      of U.S. Federal Statutory Income Tax Rate to Actual Income Tax      Rate**

|                                                      | **2005** |   | **2004** |   | **2003** |   |
|-----------------------------------------------------------|----------|--------|----------|--------|----------|--------|
|                                                      |     |   |     |   |     |   |
| U.S.                federal statutory income tax rate     | 35.0     | %      | 35.0     | %      | 35.0     | %      |
| Reduction                in rate resulting from:          |     |   |     |   |     |   |
| Tax-exempt                income                          | (0.5     | )      | (0.5     | )      | (1.1     | )      |
| Tax                on global activities including exports | (21.0    | )      | (14.4    | )      | (12.5    | )      |
| Fuels                credits                              | (1.5     | )      | (1.3     | )      | (1.5     | )      |
| Sale                of ERC Life Reinsurance Corporation   | -        |   | -        |   | (3.0     | )      |
| All                other - net                            | 0.3      |   | (1.3     | )      | (0.8     | )      |
|                                                      | (22.7    | )      | (17.5    | )      | (18.9    | )      |
| Actual                income tax rate                     | 12.3     | %      | 17.5     | %      | 16.1     | %      |

| *December                31 (In millions)*           | **2005** |   | **2004** |   |
|------------------------------------------------------|----------|--------|----------|--------|
|                                                 |     |   |     |   |   |   |
| **Assets**                                           |     |   |     |   |   |   |
| Allowance                for losses                  | $        | 2,025  |     | $      | 2,149 |   |
| Cash                flow hedges                      |     | 372    |     |   | 938 |   |
| Other                - net                           |     | 3,938  |     |   | 3,652 |   |
| Total                deferred income tax assets      |     | 6,335  |     |   | 6,739 |   |
|                                                 |     |   |     |   |   |   |
| **Liabilities**                                      |     |   |     |   |   |   |
| Financing                leases                      |     | 8,037  |     |   | 9,767 |   |
| Operating                leases                      |     | 4,024  |     |   | 3,716 |   |
| Intangible                assets                     |     | 1,195  |     |   | 892 |   |
| Other                - net                           |     | 5,658  |     |   | 4,056 |   |
| Total                deferred income tax liabilities |     | 18,914 |     |   | 18,431 |   |
|                                                 |     |   |     |   |   |   |
| Net                deferred income tax liability     | $        | 12,579 |     | $      | 11,692 |   |

**Note      14. Minority Interest in Equity of Consolidated Affiliates**

| *December                31 (In millions)*                     | **2005** |   | **2004** |   |
|----------------------------------------------------------------|----------|--------|----------|--------|
|                                                           |     |   |     |   |   |   |
| Minority                interest in consolidated affiliates(a) | $        | 864    |     | $      | 984 |   |
| Minority                interest in preferred stock(b)         |     |   |     |   |   |   |
| GE                Capital                                      |     | 70     |     |   | 2,600 |   |
| GE                Capital affiliates                           |     | 1,314  |     |   | 1,318 |   |
|                                                           | $        | 2,248  |     | $      | 4,902 |   |
|                                                           |     |   |     |   |   |   |

| (a)  | Included                minority interest in consolidated, liquidating securitization entities,                partnerships and common shares of consolidated affiliates.                                                                                        |   |
|-----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| (b)       | The                preferred stock primarily pays cumulative dividends at variable rates.                Dividend rates in local currency on the preferred stock ranged from                1.94%                to 5.38% during 2005 and 0.99% to 5.46% during 2004. |   |

----

**Note      15. Shareowner’s Equity (Restated)**

| *(In                millions)*                                          | **2005****(Restated)** |   | **2004****(Restated)** |   | **2003****(Restated)** |   |
|-------------------------------------------------------------------------|------------------------|--------|------------------------|--------|------------------------|--------|
|                                                                    |                   |   |                   |   |                   |   |   |   |   |
| **Cumulative                preferred stock issued**                    | $                      | 10     |                   | $      | 10                     |   | $ | 10 |   |
|                                                                    |                   |   |                   |   |                   |   |   |   |   |
| **Common                stock issued**                                  | $                      | 1      |                   | $      | 1                      |   | $ | 1 |   |
|                                                                    |                   |   |                   |   |                   |   |   |   |   |
| **Accumulated                nonowner changes other than earnings**     |                   |   |                   |   |                   |   |   |   |   |
| Balance                at January 1                                     | $                      | 6,863  |                   | $      | 3,999                  |   | $ | (53 | ) |
| Investment                securities - net of deferred taxes            |                   |   |                   |   |                   |   |   |   |   |
| of                $(301), $537 and $566                                 |                   | (240   | )                      |   | 746                    |   |   | 916 |   |
| Currency                translation adjustments - net of deferred taxes |                   |   |                   |   |                   |   |   |   |   |
| of                $691, $(1,271) and $(1,399)                           |                   | (2,817 | )                      |   | 2,538                  |   |   | 3,355 |   |
| Cash                flow hedges - net of deferred taxes                 |                   |   |                   |   |                   |   |   |   |   |
| of                $336, $(69) and $(390)                                |                   | 557    |                   |   | (56                    | )      |   | (731 | ) |
| Minimum                pension liabilities - net of deferred taxes      |                   |   |                   |   |                   |   |   |   |   |
| of                $2, $(42) and $(9)                                    |                   | (29    | )                      |   | (109                   | )      |   | (19 | ) |
| Reclassification                adjustments                             |                   |   |                   |   |                   |   |   |   |   |
| Investment                securities - net of deferred taxes            |                   |   |                   |   |                   |   |   |   |   |
| of                $(189), $(142) and $(143)                             |                   | (351   | )                      |   | (265                   | )      |   | (265 | ) |
| Currency                translation adjustments                         |                   | -      |                   |   | -                      |   |   | 4 |   |
| Cash                flow hedges - net of deferred taxes                 |                   |   |                   |   |                   |   |   |   |   |
| of                $(257), $(34) and $433                                |                   | (464   | )                      |   | 10                     |   |   | 792 |   |
| Balance                at December 31(a)                                | $                      | 3,519  |                   | $      | 6,863                  |   | $ | 3,999 |   |
|                                                                    |                   |   |                   |   |                   |   |   |   |   |
| **Additional                paid-in capital**                           |                   |   |                   |   |                   |   |   |   |   |
| Balance                at January 1                                     | $                      | 12,360 |                   | $      | 12,258                 |   | $ | 12,261 |   |
| Contributions(b)                                                        |                   | 16     |                   |   | 102                    |   |   | (3 | ) |
| Balance                at December 31                                   | $                      | 12,376 |                   | $      | 12,360                 |   | $ | 12,258 |   |
|                                                                    |                   |   |                   |   |                   |   |   |   |   |
| **Retained                earnings**                                    |                   |   |                   |   |                   |   |   |   |   |
| Balance                at January 1                                     | $                      | 35,145 |                   | $      | 29,522                 |   | $ | 24,983 |   |
| Net                earnings                                             |                   | 7,577  |                   |   | 8,728                  |   |   | 7,974 |   |
| Dividends(b)                                                            |                   | (7,816 | )                      |   | (3,105                 | )      |   | (3,435 | ) |
| Balance                at December 31                                   | $                      | 34,906 |                   | $      | 35,145                 |   | $ | 29,522 |   |
|                                                                    |                   |   |                   |   |                   |   |   |   |   |
| **Total                shareowner’s equity at December 31**       | $                      | 50,812 |                   | $      | 54,379                 |   | $ | 45,790 |   |
|                                                                    |                   |   |                   |   |                   |   |   |   |   |

| (a)  | Included                accumulated nonowner changes related to discontinued operations of                $484                million, $1,649 million and $1,820 million at December 31, 2005,                2004 and                2003, respectively.  |   |
|-----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| (b)       | Total                dividends and other transactions with shareowner reduced equity by                $7,800                million, $3,003 million and $3,438 million in 2005, 2004 and 2003,                respectively.                                    |   |

----

**Note      16. Supplemental Cash Flows Information**

| *December                31 (In millions)*                                       | **2005** |     | **2004** |   | **2003** |   |
|----------------------------------------------------------------------------------|----------|----------|----------|--------|----------|--------|
|                                                                             |     |     |     |   |     |   |   |   |   |
| **All                other operating activities**                                |     |     |     |   |     |   |   |   |   |
| Net                change in assets held for sale                                | $        | 2,192    |     | $      | 84       |   | $ | 1,168 |   |
| Amortization                of intangible assets                                 |     | 459      |     |   | 519      |   |   | 618 |   |
| Realized                gains on sale of investment securities                   |     | (381     | )        |   | (204     | )      |   | (205 | ) |
| Other(a)                                                                         |     | (1,794   | )        |   | (3,274   | )      |   | (2,477 | ) |
|                                                                             | $        | 476      |     | $      | (2,875   | )      | $ | (896 | ) |
|                                                                             |     |     |     |   |     |   |   |   |   |
| **Net                increase in financing receivables**                         |     |     |     |   |     |   |   |   |   |
| Increase                in loans to customers                                    | $        | (315,697 | )        | $      | (342,357 | )      | $ | (263,815 | ) |
| Principal                collections from customers - loans                      |     | 267,728  |     |   | 305,846  |   |   | 238,518 |   |
| Investment                in equipment for financing leases                      |     | (23,508  | )        |   | (22,649  | )      |   | (22,825 | ) |
| Principal                collections from customers - financing leases           |     | 21,770   |     |   | 19,715   |   |   | 18,909 |   |
| Net                change in credit card receivables                             |     | (21,391  | )        |   | (20,651  | )      |   | (11,483 | ) |
| Sales                of financing receivables                                    |     | 54,144   |     |   | 44,816   |   |   | 36,009 |   |
|                                                                             | $        | (16,954  | )        | $      | (15,280  | )      | $ | (4,687 | ) |
|                                                                             |     |     |     |   |     |   |   |   |   |
| **All                other investing activities**                                |     |     |     |   |     |   |   |   |   |
| Purchases                of securities by insurance activities                   | $        | (9,264   | )        | $      | (7,474   | )      | $ | (7,942 | ) |
| Dispositions                and maturities of securities by insurance activities |     | 10,892   |     |   | 9,305    |   |   | 9,509 |   |
| Proceeds                from principal business dispositions                     |     | 209      |     |   | 472      |   |   | 3,337 |   |
| Other                                                                            |     | 2,807    |     |   | 6,083    |   |   | 1,199 |   |
|                                                                             | $        | 4,644    |     | $      | 8,386    |   | $ | 6,103 |   |
|                                                                             |     |     |     |   |     |   |   |   |   |

| (a) | As                restated. |   |
|-----|-----------------------------|--------|

----

| *December                31 (In millions)*                                   | **2005** |    | **2004** |   | **2003** |   |
|------------------------------------------------------------------------------|----------|---------|----------|--------|----------|--------|
|                                                                         |     |    |     |   |     |   |   |   |   |
| **Newly                issued debt having maturities longer than 90 days**   |     |    |     |   |     |   |   |   |   |
| Short-term                (91 to 365 days)                                   | $        | 4,675   |     | $      | 3,940    |   | $ | 3,661 |   |
| Long-term                (longer than one year)                              |     | 60,176  |     |   | 53,641   |   |   | 55,661 |   |
| Proceeds                - nonrecourse, leveraged lease                       |     | 203     |     |   | 562      |   |   | 791 |   |
|                                                                         | $        | 65,054  |     | $      | 58,143   |   | $ | 60,113 |   |
|                                                                         |     |    |     |   |     |   |   |   |   |
| **Repayments                and other reductions of debt having maturities** |     |    |     |   |     |   |   |   |   |
| **longer                than 90 days**                                       |     |    |     |   |     |   |   |   |   |
| Short-term                (91 to 365 days)                                   | $        | (38,132 | )        | $      | (41,443  | )      | $ | (38,756 | ) |
| Long-term                (longer than one year)                              |     | (10,746 | )        |   | (3,443   | )      |   | (3,664 | ) |
| Principal                payments - nonrecourse, leveraged lease             |     | (831    | )        |   | (652     | )      |   | (782 | ) |
|                                                                         | $        | (49,709 | )        | $      | (45,538  | )      | $ | (43,202 | ) |
|                                                                         |     |    |     |   |     |   |   |   |   |
| **All                other financing activities**                            |     |    |     |   |     |   |   |   |   |
| Proceeds                from sales of investment contracts                   | $        | 15,743  |     | $      | 11,079   |   | $ | 766 |   |
| Redemption                of investment contracts                            |     | (16,934 | )        |   | (14,476  | )      |   | (480 | ) |
|                                                                         | $        | (1,191  | )        | $      | (3,397   | )      | $ | 286 |   |

**Note      17. Operating Segments (Restated)**

**Revenues**

|                                 | **Total                revenues** |   | **Intersegment                revenues** |   | **External                revenues** |   |
|--------------------------------------|-----------------------------------|--------|------------------------------------------|--------|--------------------------------------|--------|
| *(In                millions)*       | **2005****(Restated)**            |   | **2004****(Restated)**                   |   | **2003****(Restated)**               |   | **2005** |   | **2004** |   | **2003** |   | **2005****(Restated)** |   | **2004****(Restated)** |   | **2003****(Restated)** |   |
|                                 |                              |   |                                     |   |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| GE                Commercial Finance | $                                 | 20,646 |                                     | $      | 19,524                               |   | $ | 16,927 |   | $ | 204 |   | $ | 279 |   | $ | 197 |   | $ | 20,442 |   | $ | 19,245 |   | $ | 16,730 |   |
| GE                Consumer Finance   |                              | 19,416 |                                     |   | 15,734                               |   |   | 12,845 |   |   | 52 |   |   | 33 |   |   | 23 |   |   | 19,364 |   |   | 15,701 |   |   | 12,822 |   |
| GE                Industrial(a)      |                              | 6,627  |                                     |   | 6,571                                |   |   | 3,357 |   |   | 17 |   |   | 13 |   |   | 15 |   |   | 6,610 |   |   | 6,558 |   |   | 3,342 |   |
| GE                Infrastructure(a)  |                              | 5,044  |                                     |   | 4,305                                |   |   | 3,791 |   |   | - |   |   | 2 |   |   | 1 |   |   | 5,044 |   |   | 4,303 |   |   | 3,790 |   |
| GECS                corporate items  |                              |   |                                     |   |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| and                eliminations      |                              | 8,104  |                                     |   | 7,278                                |   |   | 6,593 |   |   | (273 | ) |   | (327 | ) |   | (236 | ) |   | 8,377 |   |   | 7,605 |   |   | 6,829 |   |
| Total                                | $                                 | 59,837 |                                     | $      | 53,412                               |   | $ | 43,513 |   | $ | - |   | $ | - |   | $ | - |   | $ | 59,837 |   | $ | 53,412 |   | $ | 43,513 |   |
|                                 |                              |   |                                     |   |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

| (a) | Included                only portions of the segment that are financial services                businesses. |
|-----|-------------------------------------------------------------------------------------------------------------|

----

|                                                 | **Depreciation                and amortization****For                the years ended December 31** |   | **Provision                for income taxes** |   |
|------------------------------------------------------|----------------------------------------------------------------------------------------------------|--------|-----------------------------------------------|--------|
| *(In                millions)*                       | **2005**                                                                                           |   | **2004**                                      |   | **2003** |   | **2005****(Restated)** |   | **2004****(Restated)** |   | **2003****(Restated)** |   |
|                                                 |                                                                                               |   |                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| GE                Commercial Finance                 | $                                                                                                  | 2,648  |                                          | $      | 2,772 |   | $ | 2,444 |   | $ | 971 |   | $ | 1,144 |   | $ | 493 |   |
| GE                Consumer Finance                   |                                                                                               | 393    |                                          |   | 334 |   |   | 276 |   |   | 529 |   |   | 449 |   |   | 458 |   |
| GE                Industrial(a)                      |                                                                                               | 1,912  |                                          |   | 1,876 |   |   | 996 |   |   | 64 |   |   | (124 | ) |   | (165 | ) |
| GE                Infrastructure(a)                  |                                                                                               | 1,439  |                                          |   | 1,122 |   |   | 1,074 |   |   | (202 | ) |   | 62 |   |   | 243 |   |
| GECS                corporate items and eliminations |                                                                                               | 86     |                                          |   | 146 |   |   | 241 |   |   | (27 | ) |   | 204 |   |   | 170 |   |
| Total                                                | $                                                                                                  | 6,478  |                                          | $      | 6,250 |   | $ | 5,031 |   | $ | 1,335 |   | $ | 1,735 |   | $ | 1,199 |   |
|                                                 |                                                                                               |   |                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

| (a) | Included                only portions of the segment that are financial services                businesses. |
|-----|-------------------------------------------------------------------------------------------------------------|

|                                                 | **Interest                on loans** |   | **Interest                expense** |   |
|------------------------------------------------------|--------------------------------------|--------|-------------------------------------|--------|
| *(In                millions)*                       | **2005**                             |   | **2004**                            |   | **2003** |   | **2005****(Restated)** |   | **2004****(Restated)** |   | **2003****(Restated)** |   |
|                                                 |                                 |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| GE                Commercial Finance                 | $                                    | 6,032  |                                | $      | 5,704 |   | $ | 5,240 |   | $ | 5,893 |   | $ | 4,720 |   | $ | 4,630 |   |
| GE                Consumer Finance                   |                                 | 13,086 |                                |   | 10,619 |   |   | 9,114 |   |   | 5,443 |   |   | 3,564 |   |   | 2,696 |   |
| GE                Industrial(a)                      |                                 | 10     |                                |   | 12 |   |   | 61 |   |   | 536 |   |   | 526 |   |   | 601 |   |
| GE                Infrastructure(a)                  |                                 | 541    |                                |   | 391 |   |   | 433 |   |   | 1,706 |   |   | 1,436 |   |   | 1,236 |   |
| GECS                corporate items and eliminations |                                 | 427    |                                |   | 588 |   |   | 600 |   |   | 681 |   |   | 830 |   |   | 733 |   |
| Total                                                | $                                    | 20,096 |                                | $      | 17,314 |   | $ | 15,448 |   | $ | 14,259 |   | $ | 11,076 |   | $ | 9,896 |   |
|                                                 |                                 |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

| (a) | Included                only portions of the segment that are financial services                businesses. |
|-----|-------------------------------------------------------------------------------------------------------------|

|                                                 | **Assets**(b)(c)**At                December 31** |    | **Buildings                and equipment****additions**(d)**For                the years ended December 31** |   |
|------------------------------------------------------|---------------------------------------------------|---------|--------------------------------------------------------------------------------------------------------------|--------|
| *(In                millions)*                       | **2005****(Restated)**                            |    | **2004****(Restated)**                                                                                       |   | **2003****(Restated)** |   | **2005** |   | **2004** |   | **2003** |   |
|                                                 |                                              |    |                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| GE                Commercial Finance                 | $                                                 | 190,546 |                                                                                                         | $      | 184,388 |   | $ | 172,471 |   | $ | 5,426 |   | $ | 4,573 |   | $ | 5,141 |   |
| GE                Consumer Finance                   |                                              | 158,829 |                                                                                                         |   | 151,255 |   |   | 106,530 |   |   | 189 |   |   | 217 |   |   | 191 |   |
| GE                Industrial(a)                      |                                              | 17,438  |                                                                                                         |   | 17,888 |   |   | 16,774 |   |   | 3,366 |   |   | 3,060 |   |   | 1,001 |   |
| GE                Infrastructure(a)                  |                                              | 53,852  |                                                                                                         |   | 50,921 |   |   | 45,617 |   |   | 2,874 |   |   | 3,121 |   |   | 2,345 |   |
| GECS                corporate items and eliminations |                                              | 119,919 |                                                                                                         |   | 214,162 |   |   | 213,485 |   |   | 13 |   |   | 40 |   |   | 72 |   |
| Total                                                | $                                                 | 540,584 |                                                                                                         | $      | 618,614 |   | $ | 554,877 |   | $ | 11,868 |   | $ | 11,011 |   | $ | 8,750 |   |
|                                                 |                                              |    |                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

| (a)  | Included                only portions of the segment that are financial services                businesses.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|-----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (b)  | Total                assets of the GE Commercial Finance, GE Consumer Finance, GE Industrial                and GE Infrastructure segments at December 31, 2005, include investments                in and advances to associated companies of $3,990 million, $5,902                million,                $163 million and $3,447 million, respectively, which contributed                approximately $284 million, $295 million, $(13) million and $342                million,                respectively, to segment pre-tax income for the year ended December                31,                2005.  |
| (c)  | Assets                of discontinued operations are included in GECS corporate items and                eliminations for all periods presented.                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| (d)       | Additions                to buildings and equipment include amounts relating to principal                businesses purchased.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |

----

**Basis      for presentation**

**Note      18. Derivatives and Other Financial Instruments**

**Derivatives      and hedging**

**Cash      flow hedges (Restated)**

----

**Fair      value hedges**

**Net      investment hedges**

**Derivatives      not designated as hedges**

**Earnings      effects of derivatives (Restated)**

----

**Pre-tax      Gains (Losses)**

| *December                31 (In millions)*                        | **2005****(Restated)** |   | **2004****(Restated)** |   | **2003****(Restated)** |   |
|-------------------------------------------------------------------|------------------------|--------|------------------------|--------|------------------------|--------|
|                                                              |                   |   |                   |   |                   |   |   |   |   |
| **Cash                flow hedges**                               |                   |   |                   |   |                   |   |   |   |   |
| Ineffectiveness                                                   | $                      | (27    | )                      | $      | 21                     |   | $ | (43 | ) |
| Amounts                excluded from the measure of effectiveness |                   | (5     | )                      |   | (6                     | )      |   | - |   |
|                                                              |                   |   |                   |   |                   |   |   |   |   |
| **Fair                value hedges**                              |                   |   |                   |   |                   |   |   |   |   |
| Ineffectiveness                                                   |                   | 4      |                   |   | 13                     |   |   | 1 |   |
| Amounts                excluded from the measure of effectiveness |                   | (8     | )                      |   | 3                      |   |   | - |   |

**Counterparty      credit risk**

----

**Counterparty      Credit Criteria**

|                                                                              | **Credit                rating** |
|-----------------------------------------------------------------------------------|----------------------------------|
|                                                                              | Moody’s                    |   | S&P |
|                                                                              |                             |   |   |
| Foreign                exchange forwards and other derivatives less than one year | P-1                              |   | A-1 |
| All                derivatives between one and five years                         | Aa3(a)                           |   | AA-(a) |
| All                derivatives greater than five years                            | Aaa(a)                           |   | AAA(a) |
|                                                                              |                             |   |   |

| (a) | Counterparties                that have an obligation to provide collateral to cover credit exposure                in                accordance with a credit support agreement must have a minimum A3/A-                rating. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Exposure      Limits**

| *(In                millions)*    |   |            |
|-----------------------------------|--------|-----------------|
|                              |   |            |
| **Minimum                rating** |   | **Exposure**(a) |   |
| Moody’s                     |   | S&P         |   | With                collateral arrangements |   | Without                collateral arrangements |   |
|                              |   |            |   |   |   |   |   |
| Aaa                               |   | AAA             |   | $ | 100 |   | $ | 75 |   |
| Aa3                               |   | AA-             |   |   | 50 |   |   | 50 |   |
| A3                                |   | A-              |   |   | 5 |   |   | - |   |
|                              |   |

| (a) | For                derivatives with maturities less than one year, counterparties are                permitted to have unsecured exposure up to $150 million with a minimum                rating of A-1/P-1. |   |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|

**Financial      Instruments**

|                                        | **2005**       |   | **2004**                            |
|---------------------------------------------|----------------|--------|-------------------------------------|
|                                        |           |   | Assets                (liabilities) |   |   |   | Assets                (liabilities) |
| *December                31 (In millions)*  | Notionalamount |   | Carryingamount                (net) |   | Estimatedfair                value |   | Notionalamount |   | Carryingamount                (net) |   | Estimatedfair                value |
| Assets                                      |           |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans                                       | $              | (a)    |                                | $ | 223,855 |   | $ | 224,259 |   | $ | (a) |   | $ | 216,035 |   | $ | 217,155 |   |
| Other                commercial and         |           |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| residential                mortgages        |           |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| held                for sale                |           | (a)    |                                |   | 6,696 |   |   | 6,696 |   |   | (a) |   |   | 5,143 |   |   | 5,113 |   |
| Other                financial instruments  |           | (a)    |                                |   | 4,138 |   |   | 4,494 |   |   | (a) |   |   | 2,972 |   |   | 3,184 |   |
| Liabilities                                 |           |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Borrowings(b)(c)                            |           | (a)    |                                |   | (362,069 | ) |   | (369,972 | ) |   | (a) |   |   | (355,501 | ) |   | (362,851 | ) |
| Investment                contract benefits |           | (a)    |                                |   | (9,877 | ) |   | (9,862 | ) |   | (a) |   |   | (12,539 | ) |   | (12,520 | ) |
| Insurance                - credit life(d)   |           | 2,365  |                                |   | (8 | ) |   | (8 | ) |   | 2,210 |   |   | (13 | ) |   | (13 | ) |
|                                        |           |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

| (a)  | These                financial instruments do not have notional amounts.                                                                 |   |
|-----------|-----------------------------------------------------------------------------------------------------------------------------------------------|--------|
| (b)  | Included                effects of interest rate and cross-currency swaps.                                                               |   |
| (c)  | See                note 11.                                                                                                              |   |
| (d)       | Net                of reinsurance of $292 million and $105 million at December 31, 2005                and                2004, respectively. |   |

----

**Loans**

**Borrowings**

**Investment      contract benefits**

**All      other instruments**

**Residential      mortgages**

**Insurance      - credit life**

----

**Loan      Commitments**

|                                                           | **Notional                amount** |    |
|----------------------------------------------------------------|------------------------------------|---------|
| *December                31 (In millions)*                     | **2005**                           |    | **2004** |   |
|                                                           |                               |    |   |   |   |   |
| Ordinary                course of business lending commitments |                               |    |   |   |   |   |
| Fixed                rate                                      | $                                  | 4,648   |   | $ | 2,260 |   |
| Variable                rate                                   |                               | 7,026   |   |   | 8,145 |   |
| Unused                revolving credit lines(a)                |                               |    |   |   |   |   |
| Commercial                                                     |                               |    |   |   |   |   |
| Fixed                rate                                      |                               | 779     |   |   | 1,210 |   |
| Variable                rate                                   |                               | 20,779  |   |   | 21,411 |   |
| Consumer                - principally credit cards             |                               |    |   |   |   |   |
| Fixed                rate                                      |                               | 170,367 |   |   | 141,965 |   |
| Variable                rate                                   |                               | 281,113 |   |   | 200,219 |   |
|                                                           |                               |    |   |   |   |   |

| (a) | Excluded                inventory financing arrangements, which may be withdrawn at our option,                of                $11.4 billion and $8.9 billion as of December 31, 2005 and 2004,                respectively. |   |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|

**Note      19. Securitization Entities**

| *December                31 (In millions)* | **2005** |   | **2004** |   |
|--------------------------------------------|----------|--------|----------|--------|
|                                       |     |   |     |   |
| Receivables                secured by:     |     |   |     |   |   |   |
| Equipment                                  | $        | 12,949 |     | $      | 13,941 |   |
| Commercial                real estate      |     | 13,010 |     |   | 14,626 |   |
| Residential                real estate     |     | 8,882  |     |   | 9,094 |   |
| Other                assets                |     | 12,869 |     |   | 9,880 |   |
| Credit                card receivables     |     | 10,039 |     |   | 7,075 |   |
| Total                securitized assets    | $        | 57,749 |     | $      | 54,616 |   |

----

| *December                31 (In millions)* | **2005** |   | **2004** |   |
|--------------------------------------------|----------|--------|----------|--------|
|                                       |     |   |     |   |
| Off-balance                sheet(a)(b)     | $        | 39,845 |     | $      | 28,623 |   |
| On-balance                sheet(c)         |     | 17,904 |     |   | 25,993 |   |
| Total                securitized assets    | $        | 57,749 |     | $      | 54,616 |   |
|                                       |     |   |     |   |   |   |

| (a)  | At                December 31, 2005 and 2004, liquidity support amounted to $2,000                million                and $2,300 million, respectively. These amounts are net of $3,800                million                and $4,300 million, respectively, participated or deferred beyond                one                year. Credit support amounted to $6,000 million and $6,600 million                at                December 31, 2005 and 2004, respectively.           |
|-----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (b)  | Liabilities                for recourse obligations related to off-balance sheet assets were                $93                million and $64 million at December 31, 2005 and 2004,                respectively.                                                                                                                                                                                                                                                                           |
| (c)       | At                December 31, 2005 and 2004, liquidity support amounted to $10,000                million                and $14,400 million, respectively. These amounts are net of $100                million                and $1,200 million, respectively, participated or deferred beyond                one                year. Credit support amounted to $4,800 million and $6,900 million                at                December 31, 2005 and 2004,                respectively. |

| *December                31 (In millions)*              | **2005** |   | **2004** |   |
|---------------------------------------------------------|----------|--------|----------|--------|
|                                                    |     |   |     |   |   |   |
| Financing                receivables - net (note 6)     | $        | 16,615 |     | $      | 22,848 |   |
| Other                assets                             |     | 1,235  |     |   | 2,384 |   |
| Other,                principally investment securities |     | 54     |     |   | 761 |   |
| Total                                              | $        | 17,904 |     | $      | 25,993 |   |

**Off-balance      sheet arrangements**

| *December                31 (In millions)* | **2005** |   | **2004** |   |
|--------------------------------------------|----------|--------|----------|--------|
|                                       |     |   |     |   |   |   |
| Retained                interests          | $        | 3,905  |     | $      | 2,970 |   |
| Servicing                assets            |     | 29     |     |   | 33 |   |
| Recourse                liability          |     | (93    | )        |   | (64 | ) |
| Total                                      | $        | 3,841  |     | $      | 2,939 |   |

----

| • | **Retained                interests.**                When we securitize receivables, we determine fair value of retained                interests based on discounted cash flow models that incorporate,                among                other things, assumptions about loan pool credit losses, prepayment                speeds                and discount rates. These assumptions are based on our experience,                market                trends and anticipated performance related to the particular assets                securitized. We classify retained interests in securitized receivables                as                investment securities and mark them to fair value each reporting                period,                updating our models for current assumptions. These assets decrease                as cash                is received in payment. When the carrying amounts exceed fair value,                we                evaluate whether the unrealized loss is other than temporary and,                if so,                record any indicated loss in earnings currently. |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | **Servicing                assets.**                Following a securitization transaction, we also may provide servicing                for                a market-based fee based on remaining outstanding principal balances.                Servicing assets are primarily associated with residential mortgage                loans.                Their value is subject to credit, prepayment and interest rate risk. |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | **Recourse                liability.**                Certain transactions involve credit support agreements. As a result,                we                provide for expected credit losses at amounts that approximate fair                value. |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| *(Dollars                in millions)*             | **Equipment** |   | **Commercial****real                estate** |   | **Other                assets** |   | **Credit                card****receivables** |   |
|----------------------------------------------------|---------------|--------|----------------------------------------------|--------|---------------------------------|--------|-----------------------------------------------|--------|
|                                               |          |   |                                         |   |                            |   |                                          |   |   |   |   |   |
| **2005**                                           |          |   |                                         |   |                            |   |                                          |   |   |   |   |   |
| Cash                proceeds from securitization   | $             | 3,702  |                                         | $      | 5,571                           |   | $                                             | 4,705  |   | $ | 6,985 |   |
| Proceeds                from collections           |          |   |                                         |   |                            |   |                                          |   |   |   |   |   |
| reinvested                in new receivables       |          | -      |                                         |   | -                               |   |                                          | 27,697 |   |   | 10,067 |   |
| Cash                received on retained interests |          | 190    |                                         |   | 69                              |   |                                          | 10     |   |   | 1,644 |   |
| Cash                received from servicing and    |          |   |                                         |   |                            |   |                                          |   |   |   |   |   |
| other                sources                       |          | 75     |                                         |   | 36                              |   |                                          | 91     |   |   | 155 |   |
| Weighted                average lives (in months)  |          | 37     |                                         |   | 80                              |   |                                          | 35     |   |   | 8 |   |
|                                               |          |   |                                         |   |                            |   |                                          |   |   |   |   |   |
| Assumptions                as of sale date(a)      |          |   |                                         |   |                            |   |                                          |   |   |   |   |   |
| Discount                rate                       |          | 8.8    | %                                            |   | 13.4                            | %      |                                          | 12.6   | % |   | 11.7 | % |
| Prepayment                rate                     |          | 8.8    | %                                            |   | 6.5                             | %      |                                          | 21.2   | % |   | 12.6 | % |
| Estimate                of credit losses           |          | 2.3    | %                                            |   | 0.8                             | %      |                                          | 0.6    | % |   | 7.5 | % |
|                                               |          |   |                                         |   |                            |   |                                          |   |   |   |   |   |

| (a) | Based                on weighted averages. |   |
|-----|--------------------------------------------|--------|

----

| *(Dollars                in millions)*             | **Equipment** |   | **Commercial****real                estate** |   | **Other                assets** |   | **Credit                card****receivables** |   |
|----------------------------------------------------|---------------|--------|----------------------------------------------|--------|---------------------------------|--------|-----------------------------------------------|--------|
|                                               |          |   |                                         |   |                            |   |                                          |   |   |   |   |   |
| **2004**                                           |          |   |                                         |   |                            |   |                                          |   |   |   |   |   |
| Cash                proceeds from securitization   | $             | 5,367  |                                         | $      | 4,578                           |   | $                                             | -      |   | $ | 8,121 |   |
| Proceeds                from collections           |          |   |                                         |   |                            |   |                                          |   |   |   |   |   |
| reinvested                in new receivables       |          | -      |                                         |   | -                               |   |                                          | 21,389 |   |   | 5,208 |   |
| Cash                received on retained interests |          | 107    |                                         |   | 70                              |   |                                          | 128    |   |   | 1,788 |   |
| Cash                received from servicing and    |          |   |                                         |   |                            |   |                                          |   |   |   |   |   |
| other                sources                       |          | 85     |                                         |   | 6                               |   |                                          | 62     |   |   | 138 |   |
| Weighted                average lives (in months)  |          | 37     |                                         |   | 68                              |   |                                          | -      |   |   | 7 |   |
|                                               |          |   |                                         |   |                            |   |                                          |   |   |   |   |   |
| Assumptions                as of sale date(a)      |          |   |                                         |   |                            |   |                                          |   |   |   |   |   |
| Discount                rate                       |          | 8.2    | %                                            |   | 13.0                            | %      |                                          | -      |   |   | 12.2 | % |
| Prepayment                rate                     |          | 9.1    | %                                            |   | 11.2                            | %      |                                          | -      |   |   | 14.9 | % |
| Estimate                of credit losses           |          | 1.9    | %                                            |   | 1.1                             | %      |                                          | -      |   |   | 8.9 | % |
|                                               |          |   |                                         |   |                            |   |                                          |   |   |   |   |   |

| (a) | Based                on weighted averages. |   |
|-----|--------------------------------------------|--------|

| *(Dollars                in millions)*          | **Equipment** |   | **Commercial****real                estate** |   | **Other                assets** |   | **Credit                card****receivables** |   |
|-------------------------------------------------|---------------|--------|----------------------------------------------|--------|---------------------------------|--------|-----------------------------------------------|--------|
|                                            |          |   |                                         |   |                            |   |                                          |   |   |   |   |   |
| **Discount                rate**(a)             |          | 6.4    | %                                            |   | 11.0                            | %      |                                          | 5.5    | % |   | 11.1 | % |
| Effect                of:                       |          |   |                                         |   |                            |   |                                          |   |   |   |   |   |
| 10%                Adverse change               | $             | (12    | )                                            | $      | (14                             | )      | $                                             | (4     | ) | $ | (10 | ) |
| 20%                Adverse change               |          | (24    | )                                            |   | (26                             | )      |                                          | (8     | ) |   | (23 | ) |
| **Prepayment                rate**(a)           |          | 9.7    | %                                            |   | 1.8                             | %      |                                          | 8.4    | % |   | 12.8 | % |
| Effect                of:                       |          |   |                                         |   |                            |   |                                          |   |   |   |   |   |
| 10%                Adverse change               | $             | (6     | )                                            | $      | (5                              | )      | $                                             | (7     | ) | $ | (40 | ) |
| 20%                Adverse change               |          | (12    | )                                            |   | (10                             | )      |                                          | (12    | ) |   | (77 | ) |
| **Estimate                of credit losses**(a) |          | 2.0    | %                                            |   | 1.1                             | %      |                                          | 0.5    | % |   | 7.1 | % |
| Effect                of:                       |          |   |                                         |   |                            |   |                                          |   |   |   |   |   |
| 10%                Adverse change               | $             | (11    | )                                            | $      | (7                              | )      | $                                             | (5     | ) | $ | (39 | ) |
| 20%                Adverse change               |          | (22    | )                                            |   | (13                             | )      |                                          | (9     | ) |   | (81 | ) |
| Remaining                weighted               |          |   |                                         |   |                            |   |                                          |   |   |   |   |   |
| average                lives (in months)        |          | 27     |                                         |   | 51                              |   |                                          | 15     |   |   | 7 |   |
| Net                credit losses                | $             | 63     |                                         | $      | -                               |   | $                                             | 8      |   | $ | 588 |   |
| Delinquencies                                   |          | 93     |                                         |   | 5                               |   |                                          | 59     |   |   | 374 |   |
|                                            |          |   |                                         |   |                            |   |                                          |   |   |   |   |   |

| (a) | Based                on weighted averages. |   |
|-----|--------------------------------------------|--------|

**Guarantee      and reimbursement contracts.**

----

**Note      20. Commitments and Guarantees**

**Commitments,      including guarantees**

| • | **Liquidity                support.**                Liquidity support provided to holders of certain variable rate bonds                issued by municipalities amounted to $2,510 million at December 31,                2005.                If holders elect to sell supported bonds that cannot be remarketed,                we are                obligated to repurchase them at par. If called upon, our position                would be                secured by the repurchased bonds. While we hold any such bonds, we                would                receive interest payments from the municipalities at a rate that                is in                excess of the stated rate on the bond. To date, we have not been                required                to perform under such arrangements and our existing liquidity support                will                decrease $1,437 million in 2006 and the remaining $1,073 million                by the                end of 2008 as the underlying variable rate bonds reach their maturity                date. We are currently not providing any such new liquidity facilities. |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | **Credit                support.**                We                have provided $6,030 million of credit support on behalf of certain                customers or associated companies, predominantly joint ventures and                partnerships, using arrangements such as standby letters of credit                and                performance guarantees. These arrangements enable our customers and                associated companies to execute transactions or obtain desired financing                arrangements with third parties. Should the customer or associated                company                fail to perform under the terms of the transaction or financing                arrangement, we would be required to perform on their behalf. Under                most                such arrangements, our guarantee is secured, usually by the asset                being                purchased or financed, but possibly by certain other assets of the                customer or associated company. The length of these credit support                arrangements parallels the length of the related financing arrangements                or                transactions. The liability for such credit support was $101 million                at                December 31, 2005. |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | **Indemnification                agreements.**                These are agreements that require us to fund up to $503 million under                residual value guarantees on a variety of leased equipment and $206                million of other indemnification commitments arising primarily from                sales                of businesses or assets. Under most of our residual value guarantees,                our                commitment is secured by the leased asset at termination of the lease.                The                liability for these indemnification agreements was $39 million at                December                31, 2005. |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | **Contingent                consideration.**                These are agreements to provide additional consideration in a business                combination to the seller if contractually specified conditions related                to                the acquired entity are achieved. At December 31, 2005, we had recognized                no liabilities for our total exposure of $245                million. |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**Note      21. Quarterly Information (Unaudited)**

|                                       | **First                quarter** |   | **Second                quarter** |   | **Third                quarter** |   | **Fourth                quarter** |   |
|--------------------------------------------|----------------------------------|--------|-----------------------------------|--------|----------------------------------|--------|-----------------------------------|--------|
| *(In                millions)*             | **2005****(Restated)**           |   | **2004****(Restated)**            |   | **2005****(Restated)**           |   | **2004****(Restated)**            |   | **2005****(Restated)** |   | **2004****(Restated)** |   | **2005****(Restated)** |   | **2004****(Restated)** |   |
|                                       |                             |   |                              |   |                             |   |                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                revenues              | $                                | 14,585 |                              | $      | 11,761                           |   | $                                 | 14,136 |   | $ | 13,719 |   | $ | 15,841 |   | $ | 12,649 |   | $ | 15,275 |   | $ | 15,283 |   |
| Earnings                from continuing    |                             |   |                              |   |                             |   |                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| operations                before income    |                             |   |                              |   |                             |   |                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| taxes                and accounting change | $                                | 2,445  |                              | $      | 1,775                            |   | $                                 | 2,006  |   | $ | 2,656 |   | $ | 3,341 |   | $ | 2,305 |   | $ | 3,042 |   | $ | 3,193 |   |
| Provision                for income taxes  |                             | (355   | )                                 |   | (339                             | )      |                              | (121   | ) |   | (629 | ) |   | (591 | ) |   | (406 | ) |   | (268 | ) |   | (361 | ) |
| Earnings                from continuing    |                             |   |                              |   |                             |   |                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| operations                                 |                             | 2,090  |                              |   | 1,436                            |   |                              | 1,885  |   |   | 2,027 |   |   | 2,750 |   |   | 1,899 |   |   | 2,774 |   |   | 2,832 |   |
| Earnings                (loss) from        |                             |   |                              |   |                             |   |                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| discontinued                operations,    |                             |   |                              |   |                             |   |                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| net                of taxes                |                             | 403    |                              |   | 398                              |   |                              | 275    |   |   | 93 |   |   | 108 |   |   | 130 |   |   | (2,708 | ) |   | (87 | ) |
| Net                earnings                | $                                | 2,493  |                              | $      | 1,834                            |   | $                                 | 2,160  |   | $ | 2,120 |   | $ | 2,858 |   | $ | 2,029 |   | $ | 66 |   | $ | 2,745 |   |

**Item      9. Changes in and Disagreements with Accountants on Accounting and Financial      Disclosure.**

**Item      9A. Controls and Procedures **

----

**Report      of Independent Registered Public Accounting Firm**

----

**Item      9B. Other Information.**

----

**PART      III**

**Item      10. Directors and Executive Officers of the Registrant.**

**Item      11. Executive Compensation.**

**Item      12. Security Ownership of Certain Beneficial Owners and Management and Related      Stockholder Matters.**

**Item      13. Certain Relationships and Related Transactions.**

**Item      14. Principal Accounting Fees and Services.**

| *(In                millions)*    |   | **2005** |   |   | **2004** |   |
|-----------------------------------|--------|----------|--------|--------|----------|--------|
|                              |   |     |   |   |     |   |
| **Type                of fees**   |   |     |   |   |     |   |
| Audit                fees         | $      | 35.1     |   | $      | 32.8     |   |
| Audit-related                fees |   | 3.7      |   |   | 7.5      |   |
| Tax                fees           |   | 5.1      |   |   | 3.9      |   |
| All                other fees     |   | -        |   |   | -        |   |
|                              | $      | 43.9     |   | $      | 44.2     |   |

----

**PART      IV**

**Item        15. Exhibits and Financial Statement        Schedules.**

| (a) 1. | **Financial                Statements**            |
|-------------|----------------------------------------------------|
|        |
|        | Included                in Part II of this report: |
|        |
|        |                                               | Report                of Independent Registered Public Accounting FirmStatement                of Earnings for each of the years in the three-year period ended                December                31, 2005Statement                of Changes in Shareowner’s Equity for each of the years in the three-year                period ended  December                31, 2005Statement                of Financial Position at December 31, 2005 and 2004Statement                of Cash Flows for each of the years in the three-year period ended                December 31, 2005Notes                to Consolidated Financial Statements |
|        |
|        | Incorporated                by reference:          |
|        |
|        |                                               | The                consolidated financial statements of General Electric Company, set                forth                in the Annual Report on Form 10-K of General Electric Company (S.E.C.                File                No. 001-00035) for the year ended December 31, 2005 (pages 41 through                109)                and Exhibit 12 (Ratio of Earnings to Fixed Charges) of General Electric                Company. |
|        |
| (a) 2. | **Financial                Statement Schedules**   |
|        |
|        | Schedule                I                          | Condensed                financial information of registrant. |
|        |                                               |   |
|        |                                               | All                other schedules are omitted because of the absence of conditions                under                which they are required or because the required information is shown                in                the financial statements or notes                thereto. |

| (a) 3. | **Exhibit                Index**                                                                                                                                                                                            |
|-------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|        |
|        | The                exhibits listed below, as part of Form 10-K/A, are numbered in conformity                with the numbering used in Item 601 of Regulation S-K of the Securities                and Exchange Commission. |

|   | **Exhibit****Number** |   | **Description**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|--------|-----------------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |
|   | 3(i)                  |   | A                complete copy of the Certificate of Incorporation of GECS as last                amended                on July 22, 1999, and currently in effect, consisting of the following:                (a) the Certificate of Incorporation of GECS as in effect immediately                prior to the filing of a Certificate of Amendment on July 22, 1999                (Incorporated by reference to Exhibit 3(i) of the GECS’ Form 10-K Report                for the year ended December 31, 1993); and (b) a Certificate of Amendment                filed with the Office of the Secretary of State, State of Delaware                on July                22, 1999 (Incorporated by reference to Exhibit 3(i) of GECS’ Form 10-Q                Report for the quarter ended June 26,                1999). |

----

|   |
|--------|
|   | 3(ii) |   | A                complete copy of the By-Laws of GECS as last amended on September                19,                2002, and currently in effect (Incorporated by reference to Exhibit                3(ii)                of GECS’ Form 10-K Report for the year ended December 31,                2003). |
|   |
|   | 4(a) |   | Amended                and Restated General Electric Capital Corporation Standard Global                Multiple                Series Indenture Provisions dated as of February 27, 1997 (Incorporated                by                reference to Exhibit 4(a) to GECC’s Registration Statement on Form S-3,                File No. 333-59707). |
|   |
|   | 4(b) |   | Third                Amended and Restated Indenture dated as of February 27, 1997, between                GECC                and JPMorgan Chase Bank, N.A., (formerly known as The Chase Manhattan                Bank) as successor trustee (Incorporated by reference to Exhibit                4(c) to                GECC’s Registration Statement on Form S-3, File No.                333-59707). |
|   |
|   | 4(c) |   | First                Supplemental Indenture dated as of May 3, 1999, supplemental to Third                Amended and Restated Indenture dated as of February 27, 1997 (Incorporated                by reference to Exhibit 4(dd) to GECC’s Post-Effective Amendment No. 1 to                Registration Statement on Form S-3, File No.                333-76479). |
|   |
|   | 4(d) |   | Second                Supplemental Indenture dated as of July 2, 2001, supplemental to                Third                Amended and Restated Indenture dated as of February 27, 1997 (Incorporated                by reference to Exhibit 4(f) to GECC’s Post-Effective Amendment No. 1 to                Registration Statement on Form S-3, File No.                333-40880). |
|   |
|   | 4(e) |   | Third                Supplemental Indenture dated as of November 22, 2002, supplemental                to                Third Amended and Restated Indenture dated as of February 27, 1997                (Incorporated by reference to Exhibit 4(cc) to Post-Effective Amendment                No. 1 to GECC’s Registration Statement on Form S-3, File No.                333-100527). |

|   |
|--------|
|   | 4(f) |   | Seventh                Amended and Restated Fiscal and Paying Agency Agreement among GECC,                GE                Capital Australia Funding Pty Ltd, GE Capital European Funding, GE                Capital                Canada Funding Company, GE Capital UK Funding and JPMorgan Chase                Bank,                N.A. and J.P. Morgan Bank (Ireland) p.l.c. dated as of July 1,                2005. |

|   | 4(g) |   | Form                of Global Medium-Term Note, Series A, Fixed Rate Registered Note                (Incorporated by reference to Exhibit 4(m) to GECC’s Registration                Statement on Form S-3, File No. 333-100527).    |
|--------|------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |
|   | 4(h) |   | Form                of Global Medium-Term Note, Series A, Floating Rate Registered Note                (Incorporated by reference to Exhibit 4(n) to GECC’s Registration                Statement on Form S-3, File No. 333-100527). |
|   |
|   | 4(i) |   | Form                of Euro Medium-Term Note and Debt Security - Permanent Global Fixed                Rate                Bearer Note.                                                                                                    |
|   |
|   | 4(j) |   | Form                of Euro Medium-Term Note and Debt Security - Permanent Global Floating                Rate Bearer Note.                                                                                                                |

----

|   |
|--------|
|   | 4(k) |   | Form                of Euro Medium-Term Note and Debt Security - Temporary Global Fixed                Rate                Bearer Note. |
|   |
|   | 4(l) |   | Form                of Euro Medium-Term Note and Debt Security - Temporary Global Floating                Rate Bearer Note. |
|   |
|   | 4(m) |   | Form                of Euro Medium-Term Note and Debt Security - Definitive Fixed Rate                Bearer                Note. |
|   |
|   | 4(n) |   | Form                of Euro Medium-Term Note and Debt Security - Definitive Floating                Rate                Bearer Note. |
|   |
|   | 4(o) |   | Agreement                to furnish to the Securities and Exchange Commission upon request                a copy                of instruments defining the rights of holders of certain long-term                debt of                the registrant and all subsidiaries for which consolidated or                unconsolidated financial statements are required to be                filed. |
|   |
|   | 10(a) |   | Transaction                Agreement by and between Swiss Reinsurance Company and General Electric                Company dated November 18, 2005 (Incorporated by reference to Exhibit                10(gg) of General Electric Company’s Form 10-K Report for the year ended                December 31, 2005). |
|   |   |   |   |
|   | 12(a) |   | Computation                of Ratio of Earnings to Fixed Charges.* |
|   |
|   | 12(b) |   | Computation                of Ratio of Earnings to Combined Fixed Charges and Preferred Stock                Dividends.* |
|   |
|   | 23(ii) |   | Consent                of KPMG LLP.* |

|   | 24     |   | Power                of Attorney.*                                                                                                                                                                                                                                                                                                                                                                                            |
|--------|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |
|   | 31(a)  |   | Certification                Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange                Act of 1934, as amended.*                                                                                                                                                                                                                                                                                 |
|   |
|   | 31(b)  |   | Certification                Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange                Act of 1934, as amended.*                                                                                                                                                                                                                                                                                 |
|   |
|   | 32     |   | Certification                Pursuant to 18 U.S.C. Section 1350.*                                                                                                                                                                                                                                                                                                                                                             |
|   |   |   |                                                                                                                                                                                                                                                                                                                                                                                                                          |
|   | 99(a)  |   | Income                Maintenance Agreement dated March 28, 1991, between General Electric                Company and General Electric Capital Corporation. (Incorporated by                reference to Exhibit 99(h) to GECC’s Registration Statement on Form S-3,                File No. 333-100527).                                                                                                               |
|   |
|   | 99(b)  |   | The                consolidated financial statements of General Electric Company, set                forth                in the Annual Report on Form 10-K of General Electric Company (S.E.C.                File                No. 001-00035) for the year ended December 31, 2005, (pages 41 through                109) and Exhibit 12 (Ratio of Earnings to Fixed Charges) of General                Electric Company. |

----

|                                                             |
|------------------------------------------------------------------|
|                                                             | 99(c) |   | Letter,                dated February 4, 1999, from Dennis D. Dammerman of General Electric                Company to Denis J. Nayden of General Electric Capital Corporation                pursuant to which General Electric Company agrees to provide additional                equity to General Electric Capital Corporation in conjunction with                certain                redemptions by General Electric Capital Corporation of shares of                its                Variable Cumulative Preferred Stock. (Incorporated by reference to                Exhibit                99(g) to General Electric Capital Corporation’s Post-Effective Amendment                No. 1 to Registration Statement on Form S-3, File No.                333-59707). |
|                                                             |
|   * Filed                electronically herewith. |

----

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

**Schedule      I - Condensed Financial Information of Registrant**

**General      Electric Capital Services, Inc.**

**Condensed      Statement of Current and Retained Earnings**

| *For                the years ended December 31 (In millions)*               |   | **2005****(Restated)** |   |   | **2004****(Restated)** |   |   | **2003****(Restated)** |   |
|------------------------------------------------------------------------------|--------|------------------------|--------|--------|------------------------|--------|--------|------------------------|--------|
|                                                                         |   |                   |   |   |                   |   |   |                   |   |
| **Revenues**                                                                 | $      | 330                    |   | $      | 132                    |   | $      | (30                    | )      |
|                                                                         |   |                   |   |   |                   |   |   |                   |   |
| **Expenses**                                                                 |   |                   |   |   |                   |   |   |                   |   |
| Interest                                                                     |   | 405                    |   |   | 217                    |   |   | 190                    |   |
| Operating                and administrative                                  |   | 678                    |   |   | 174                    |   |   | 112                    |   |
| Total                expenses                                                |   | 1,083                  |   |   | 391                    |   |   | 302                    |   |
|                                                                         |   |                   |   |   |                   |   |   |                   |   |
| Loss                before income taxes and equity in earnings of affiliates |   | (753                   | )      |   | (259                   | )      |   | (332                   | )      |
| Income                tax benefit (expense)                                  |   | (814                   | )      |   | 39                     |   |   | 75                     |   |
| Equity                in earnings of affiliates                              |   | 9,144                  |   |   | 8,948                  |   |   | 8,570                  |   |
| Cumulative                effect of accounting change                        |   | -                      |   |   | -                      |   |   | (339                   | )      |
|                                                                         |   |                   |   |   |                   |   |   |                   |   |
| **Net                earnings**                                         |   | 7,577                  |   |   | 8,728                  |   |   | 7,974                  |   |
| Dividends                                                                    |   | (7,816                 | )      |   | (3,105                 | )      |   | (3,435                 | )      |
| Retained                earnings at January 1                                |   | 35,145                 |   |   | 29,522                 |   |   | 24,983                 |   |
|                                                                         |   |                   |   |   |                   |   |   |                   |   |
| **Retained                earnings at December 31**                     | $      | 34,906                 |   | $      | 35,145                 |   | $      | 29,522                 |   |
|                                                                         |   |                   |   |   |                   |   |   |                   |   |

| The                notes to condensed financial statements are an integral part of this                statement.  |   |
|-------------------------------------------------------------------------------------------------------------------------|--------|

----

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

**Schedule      I - Condensed Financial Information of Registrant -      (Continued)**

**General      Electric Capital Services, Inc.**

**Condensed      Statement of Financial Position**

| *At                December 31 (In millions, except share amounts)*                                    |   | **2005****(Restated)** |   |   | **2004****(Restated)** |   |
|--------------------------------------------------------------------------------------------------------|--------|------------------------|--------|--------|------------------------|--------|
|                                                                                                   |   |                   |   |   |                   |   |
| **Assets**                                                                                             |   |                   |   |   |                   |   |
| Cash                and equivalents                                                                    | $      | 743                    |   | $      | 45                     |   |
| Investment                in and advances to affiliates                                                |   | 59,047                 |   |   | 62,454                 |   |
| Other                assets                                                                            |   | 414                    |   |   | 529                    |   |
| Total                assets                                                                            | $      | 60,204                 |   | $      | 63,028                 |   |
|                                                                                                   |   |                   |   |   |                   |   |
| **Liabilities                and equity**                                                              |   |                   |   |   |                   |   |
| Borrowings                                                                                             | $      | 7,889                  |   | $      | 7,756                  |   |
| Other                liabilities                                                                       |   | 1,003                  |   |   | 393                    |   |
| Total                liabilities                                                                       |   | 8,892                  |   |   | 8,149                  |   |
|                                                                                                   |   |                   |   |   |                   |   |
| Cumulative                preferred stock, $10,000 par value (80,000 shares                authorized; |   |                   |   |   |                   |   |
| 51,000                shares issued and held primarily by consolidated affiliates                at    |   |                   |   |   |                   |   |
| December                31, 2005 and 2004)                                                             |   | 510                    |   |   | 510                    |   |
| Common                stock, $1,000 par value (1,260 shares authorized at                              |   |                   |   |   |                   |   |
| December                31, 2005 and 2004, and 1,064 shares issued and outstanding                at   |   |                   |   |   |                   |   |
| December                31, 2005 and 2004)                                                             |   | 1                      |   |   | 1                      |   |
| Accumulated                gains (losses) - net                                                        |   |                   |   |   |                   |   |
| Investment                securities                                                                   |   | 1,754                  |   |   | 2,345                  |   |
| Currency                translation adjustments                                                        |   | 2,287                  |   |   | 5,104                  |   |
| Cash                flow hedges                                                                        |   | (343                   | )      |   | (436                   | )      |
| Minimum                pension liabilities                                                             |   | (179                   | )      |   | (150                   | )      |
| Additional                paid-in capital                                                              |   | 12,376                 |   |   | 12,360                 |   |
| Retained                earnings                                                                       |   | 34,906                 |   |   | 35,145                 |   |
| Total                shareowner’s equity                                                         |   | 51,312                 |   |   | 54,879                 |   |
| Total                liabilities and equity                                                            | $      | 60,204                 |   | $      | 63,028                 |   |
|                                                                                                   |   |                   |   |   |                   |   |

| The                sum of accumulated gains (losses) on investment securities, currency                translation adjustments, restated cash flow hedges and minimum pension                liabilities constitutes “Accumulated nonowner changes other than                earnings,” and was $3,519 million and $6,863 million at December 31, 2005                and 2004, respectively.  |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| The                notes to condensed financial statements are an integral part of this                statement.                                                                                                                                                                                                                                                                                               |   |

----

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

**Schedule      I - Condensed Financial Information of Registrant -      (Continued)**

**General      Electric Capital Services, Inc.**

**Condensed      Statement of Cash Flows**

| *For                the years ended December 31 (In millions)*                                                    | **2005** |   | **2004** |   | **2003** |   |
|-------------------------------------------------------------------------------------------------------------------|----------|--------|----------|--------|----------|--------|
|                                                                                                              |     |   |     |   |     |   |
| **Cash                from operating activities**                                                                 | $        | 7,324  |     | $      | 3,122    |   | $ | 4,114 |   |
| **Cash                flows****-****investing activities**                                                        |     |   |     |   |     |   |   |   |   |
| Decrease                (increase) in investment in and advances to affiliates                                    |     | 559    |     |   | (1,120   | )      |   | 388 |   |
| Net                decrease in other assets                                                                       |     | 489    |     |   | 124      |   |   | 457 |   |
|                                                                                                              |     |   |     |   |     |   |   |   |   |
| **Cash                from (used for) investing activities**                                                      |     | 1,048  |     |   | (996     | )      |   | 845 |   |
|                                                                                                              |     |   |     |   |     |   |   |   |   |
| **Cash                flows****-****financing activities**                                                        |     |   |     |   |     |   |   |   |   |
| Net                increase (decrease) in borrowings                                                              |     | 142    |     |   | 499      |   |   | (1,013 | ) |
| Dividends                paid to shareowner                                                                       |     | (7,816 | )        |   | (3,105   | )      |   | (3,435 | ) |
|                                                                                                              |     |   |     |   |     |   |   |   |   |
| **Cash                used for financing activities**                                                             |     | (7,674 | )        |   | (2,606   | )      |   | (4,448 | ) |
|                                                                                                              |     |   |     |   |     |   |   |   |   |
|                                                                                                              |     |   |     |   |     |   |   |   |   |
| **Increase                (decrease) in cash and equivalents during year**                                        |     | 698    |     |   | (480     | )      |   | 511 |   |
| Cash                and equivalents at beginning of year                                                          |     | 45     |     |   | 525      |   |   | 14 |   |
| Cash                and equivalents at end of year                                                                | $        | 743    |     | $      | 45       |   | $ | 525 |   |
|                                                                                                              |     |   |     |   |     |   |   |   |   |
|                                                                                                              |     |
| The                notes to condensed financial statements are an integral part of this                statement. |     |

----

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

**Schedule      I - Condensed Financial Information of Registrant -      (Concluded)**

**General      Electric Capital Services, Inc.**

**Notes      to Condensed Financial Statements**

**Financial      statements presentation**

**Income      taxes**

**Dividends      from affiliates**

----

**Signatures**

|                            |   | General                Electric Capital Services, Inc. |
|---------------------------------|--------|--------------------------------------------------------|
|                            |   |                                              |
| January                19, 2007 |   | By: /s/                Jeffrey R. Immelt          |   |
|                            |   | Jeffrey                R. Immelt                       |
|                            |   | Chief                Executive Officer                 |

----

| Signature                                           |                                           | Title                                               |   | Date                            |
|-----------------------------------------------------|------------------------------------------------|-----------------------------------------------------|--------|---------------------------------|
|                                           |                                           |                                                |   |                            |
| /s/                Jeffrey R. Immelt                |                                           | Chief                Executive Officer              |   | January                19, 2007 |
| Jeffrey                R. Immelt                    |                                           | (Principal                Executive Officer)        |   |                            |
|                                           |                                           |                                                |   |                            |
| /s/                Keith S. Sherin                  |                                           | Chief                Financial Officer              |   | January                19, 2007 |
| Keith                S. Sherin                      |                                           | (Principal                Financial Officer)        |   |                            |
|                                           |                                           |                                                |   |                            |
| /s/                Philip D. Ameen                  |                                           | Senior                Vice President and Controller |   | January                19, 2007 |
| Philip                D. Ameen                      |                                           | (Principal                Accounting Officer)       |   |                            |
|                                                |                                           |                                                |   |                            |
|                                                |                                           |                                                |   |                            |
| CHARLES                E. ALEXANDER*                |                                           | Director                                            |   |                            |
| JEFFREY                S. BORNSTEIN*                |                                           | Director                                            |   |                            |
| KATHRYN                A. CASSIDY*                  |                                           | Director                                            |   |                            |
| JAMES                A. COLICA*                     |                                           | Director                                            |   |                            |
| PAMELA                DALEY*                        |                                           | Director                                            |   |                            |
| BRACKETT                B. DENNISTON*               |                                           | Director                                            |   |                            |
| JEFFREY                R. IMMELT*                   |                                           | Director                                            |   |                            |
| MICHAEL                A. NEAL*                     |                                           | Director                                            |   |                            |
| DAVID                R. NISSEN*                     |                                           | Director                                            |   |                            |
| RONALD                R. PRESSMAN*                  |                                           | Director                                            |   |                            |
| DEBORAH                M. REIF*                     |                                           | Director                                            |   |                            |
| JOHN                G. RICE*                        |                                           | Director                                            |   |                            |
| JOHN                M. SAMUELS*                     |                                           | Director                                            |   |                            |
| KEITH                S. SHERIN*                     |                                           | Director                                            |   |                            |
| LLOYD                G. TROTTER                     |                                           | Director                                            |   |                            |
| ROBERT                C. WRIGHT*                    |                                           | Director                                            |   |                            |
|                                                |                                           |                                                |   |                            |
| A                MAJORITY OF THE BOARD OF DIRECTORS |                                           |                                                |
|                                           |                                           |                                                |   |                            |
| *By:                                                | /s/                Philip D. Ameen             |                                                |   | January                19, 2007 |
|                                                | Philip                D. AmeenAttorney-in-fact |                                                |   |                            |

----