<PAGE>
 
                                                                      EXHIBIT 99


               UNITED STATES SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                 -------------
                                   FORM 10-Q
                                 -------------


         [X]   QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                        SECURITIES EXCHANGE ACT OF 1934

               For the quarterly period ended September 26, 1998

                                       OR

         [_]     TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                        SECURITIES EXCHANGE ACT OF 1934

                   For the transition period from ___ to ___

                         -----------------------------
                         Commission file number 1-6461
                         -----------------------------

                      GENERAL ELECTRIC CAPITAL CORPORATION
                      ------------------------------------
             (Exact name of registrant as specified in its charter)


           NEW YORK                                       13-1500700
     (State or other jurisdiction of                   (I.R.S. Employer
incorporation or organization)                           Identification
                                                                No.)


        260 LONG RIDGE ROAD,
       STAMFORD, CONNECTICUT                                 06927
(Address of principal executive offices)                   (Zip Code)

                                 (203) 357-4000
              (Registrant's telephone number, including area code)

                      ------------------------------------

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the  preceding 12 months (or for such  shorter period that the  registrant  was
required  to file  such  reports),  and  (2) has  been  subject  to such  filing
requirements for the past 90 days. Yes |X| No | |

At November 6, 1998, 3,837,825 shares of common stock with a par value of $200
were outstanding.

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

                                                                            PAGE
                                                                            ----
PART I - FINANCIAL INFORMATION.

Item 1.       Financial Statements                                            1

Item 2.       Management's Discussion and Analysis of Results
              of Operations                                                   6

Exhibit 12.   Computation of Ratio of Earnings to Fixed Charges
              and Computation of Ratio of Earnings to Combined
              Fixed Charges and Preferred Stock Dividends                     9


PART II - OTHER INFORMATION.

Item 6.       Exhibits and Reports on Form 8-K                               10
                                                                               
Signatures                                                                   11 
                                                                               
Index to Exhibits                                                            12 
<PAGE>
 
                        PART I - FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS. 

       GENERAL ELECTRIC CAPITAL CORPORATION AND CONSOLIDATED AFFILIATES 

             CONDENSED STATEMENT OF CURRENT AND RETAINED EARNINGS

                                  (Unaudited)
<TABLE>
<CAPTION>
 
                                                  THREE MONTHS ENDED             NINE MONTHS ENDED
                                                -----------------------       ------------------------
                                                SEPTEMBER     SEPTEMBER       SEPTEMBER      SEPTEMBER
                                                 26, 1998      27, 1997        26, 1998       27, 1997
                                                                   (In millions)
                                                ---------     ---------       ---------      ---------
<S>                                            <C>           <C>             <C>            <C> 
REVENUES
Revenues from services......................     $ 8,529      $ 7,195          $24,495        $20,649
Sales of goods..............................       1,806        1,182            5,325          3,159
                                                 -------      -------          -------        -------
                                                  10,335        8,377           29,820         23,808
                                                 -------      -------          -------        -------
EXPENSES
Interest....................................       2,076        1,832            6,129          5,323       
Operating and administrative                       2,817        2,504            8,167          6,646       
Cost of goods sold..........................       1,681        1,063            4,891          2,801       
Insurance losses and                                                                                        
 policyholder and annuity                                                                                   
 benefits...................................       1,418        1,227            4,127          3,482       
Provision for losses on                                                                                     
 financing receivables......................         304          371            1,044          1,020       
Depreciation and amortization                                                                               
 of buildings and equipment                                                                                 
 and equipment on operating                                                                                 
 leases.....................................         663          623            1,913          1,751       
Minority interest in net                                                                                    
 earnings of consolidated                                                                                   
 affiliates.................................          14           13               35             27       
                                                 -------      -------          -------        -------
                                                   8,973        7,633           26,306         21,050       
                                                 -------      -------          -------        -------
EARNINGS                                                                                                    
Earnings before income                                                                                      
 taxes......................................       1,362          744            3,514          2,758       
Provision for income taxes                          (432)        (176)            (991)          (775)      
                                                 -------      -------          -------        -------
NET EARNINGS                                         930          568            2,523          1,983       
Dividends...................................        (341)        (529)            (867)        (1,186)      
Retained earnings at                                                                                        
 beginning of period........................      12,928       11,436           11,861         10,678       
                                                 -------      -------          -------        -------
RETAINED EARNINGS AT END                                                                                    
OF PERIOD...................................     $13,517      $11,475          $13,517        $11,475       
                                                 =======      =======          =======        =======        
</TABLE>

          See Notes to Condensed, Consolidated Financial Statements.

                                       1
<PAGE>
 
ITEM 1. FINANCIAL STATEMENTS (Continued).

        GENERAL ELECTRIC CAPITAL CORPORATION AND CONSOLIDATED AFFILIATES

                   CONDENSED STATEMENT OF FINANCIAL POSITION
<TABLE>
<CAPTION>
 
                                                           SEPTEMBER            DECEMBER
                                                           26, 1998             31, 1997
                                                         ------------         -------------
                                                                   (In millions)
                                                                    (Unaudited)
<S>                                                       <C>                 <C> 
ASSETS
Cash and equivalents............................           $  4,708              $  4,648
Investment securities...........................             57,079                53,103
Financing receivables:                                                      
  Time sales and loans, net of deferred income .             71,145                64,832
  Investment in financing leases, net of                                    
  deferred income...............................             45,411                41,769
                                                           --------              --------
                                                            116,556               106,601
  Allowance for losses on financing receivables              (3,065)               (2,802)
                                                           --------              --------
Financing receivables - net.....................            113,491               103,799
Other receivables - net.........................             14,877                11,925
Equipment on operating leases (at cost), less                               
 accumulated amortization of $6,716 and $6,126 .             20,209                18,689
Intangible assets...............................             10,737                 9,459
Inventories.....................................                729                   786
Other assets....................................             32,306                26,368
                                                           --------              --------
   TOTAL ASSETS.................................           $254,136              $228,777
                                                           ========              ========
                                                                            
LIABILITIES AND EQUITY                                                      
Short-term borrowings...........................           $ 98,485              $ 91,680
Long-term borrowings:                                                       
  Senior........................................             55,249                44,437
  Subordinated..................................                697                   697
Insurance liabilities, reserves and annuity                                 
 benefits.......................................             52,991                50,248
Other liabilities...............................             16,522                14,315
Deferred income taxes...........................              8,734                 8,167
                                                           --------              --------
   Total liabilities............................            232,678               209,544                                           
                                                           --------              --------
Minority interest in equity of consolidated                                 
 affiliates.....................................              1,076                   860    
                                                           --------              --------
                                                                            
Unrealized gains on investment securities.......              1,435                 1,145
Foreign currency translation adjustments........               (154)                 (147)
                                                           --------              --------
Accumulated non-owner changes in equity.........              1,281                   998
Capital stock...................................                770                   770
Additional paid-in capital......................              4,814                 4,744
Retained earnings...............................             13,517                11,861
                                                           --------              --------
   Total equity.................................             20,382                18,373
                                                           --------              --------
   TOTAL LIABILITIES AND EQUITY.................           $254,136              $228,777
                                                           ========              ======== 
</TABLE>
              See Notes to Condensed, Consolidated Financial Statements.

                                       2
<PAGE>
 
ITEM 1. FINANCIAL STATEMENTS (Continued).

        GENERAL ELECTRIC CAPITAL CORPORATION AND CONSOLIDATED AFFILIATES

                       CONDENSED STATEMENT OF CASH FLOWS
                                  (Unaudited)
<TABLE>

                                                                   NINE MONTHS ENDED                 
                                                                 ---------------------               
                                                                 SEPTEMBER   SEPTEMBER               
                                                                 26, 1998     27, 1997               
                                                                     (In millions)                   
                                                                 ---------   --------- 
<S>                                                              <C>         <C> 
CASH FLOWS FROM OPERATING ACTIVITIES                                                                 
Net earnings..............................................       $  2,523    $  1,983                
Adjustments to reconcile net earnings to cash                                                        
 provided from operating activities:                                                                 
  Provision for losses on financing receivables...........          1,044       1,020                
  Depreciation and amortization of buildings and                                                     
   equipment and equipment on                                                                        
    operating leases......................................          1,913       1,751                
  Other - net.............................................          2,749       1,203                
                                                                 --------    --------                
    Cash provided from operating activities...............          8,229       5,957                
                                                                 --------    --------                
                                                                                                     
CASH FLOWS FROM INVESTING ACTIVITIES                                                                 
Increase in loans to customers............................        (48,057)    (38,386)               
Principal collections from customers......................         43,711      36,328                
Investment in assets on financing leases..................        (13,886)     (9,943)               
Principal collections on financing leases.................         11,911      11,559                
Net decrease in credit card receivables...................          3,307       2,335                
Buildings and equipment and equipment on                                                             
 operating leases:                                                                                   
    - additions...........................................         (4,010)     (4,617)               
    - disposition.........................................          2,021       1,867                
Payments for principal businesses purchased,                                                         
 net of cash acquired.....................................         (8,294)     (1,532)               
Purchases of investment securities by insurance                                                      
 affiliates and annuity businesses........................        (11,845)     (7,892)               
Dispositions and maturities of investment                                                            
 securities by insurance affiliates and annuity                                                      
 businesses...............................................          8,669       6,828                
Other - net...............................................         (4,868)     (4,456)               
                                                                 --------    --------                
    Cash used for investing activities....................        (21,341)     (7,909)               
                                                                 --------    --------                
CASH FLOWS FROM FINANCING ACTIVITIES                                                                 
Net change in borrowings (maturities 90 days                                                         
 or less).................................................          5,718       6,861                
Newly issued debt  - short-term                                                                      
 (maturities 91-365 days).................................          4,126       3,240                
  - long-term senior......................................         26,158      12,099                
Proceeds - non-recourse leveraged lease debt..............            971         129                
Repayments and other reductions:                                                                     
  - short-term (maturities 91-365 days)...................        (17,992)    (18,486)               
  - long-term senior......................................         (4,298)       (861)               
Principal payments - non-recourse, leveraged                                                         
 lease debt...............................................           (333)       (262)               
Proceeds from sales of investment and annuity                                                        
 contracts................................................          3,284       3,334                
Redemption of investment and annuity contracts............           (867)     (1,186)               
Issuance of preferred stock in excess of par                                                         
 value....................................................             70        --                  
Issuance of variable cumulative preferred stock                                                      
 by consolidated affiliate................................            100         100                
                                                                 --------    --------                
    Cash provided from financing activities...............         13,172       1,717                
                                                                 --------    --------                
INCREASE (DECREASE) IN CASH AND EQUIVALENTS...............             60        (235)               
CASH AND EQUIVALENTS AT BEGINNING OF PERIOD...............          4,648       3,074                
                                                                 --------    --------                
CASH AND EQUIVALENTS AT END OF PERIOD.....................       $  4,708    $  2,839                
                                                                 ========    ========                 
</TABLE>


See Notes to Condensed, Consolidated Financial Statements.

                                       3
<PAGE>
 
ITEM 1.  FINANCIAL STATEMENTS (Continued).

        GENERAL ELECTRIC CAPITAL CORPORATION AND CONSOLIDATED AFFILIATES

             NOTES TO CONDENSED, CONSOLIDATED FINANCIAL STATEMENTS
                                  (UNAUDITED)

1.    The accompanying condensed quarterly financial statements represent the
adding together of General Electric Capital Corporation  and all majority-owned
and controlled affiliates (collectively called "the Corporation" or "GECC"). All
significant transactions among the parent and consolidated affiliates have been
eliminated.  Certain prior period data have been reclassified to conform to the
current period presentation.

2.    The condensed consolidated quarterly financial statements are unaudited.
These statements include all adjustments (consisting of normal recurring
accruals) considered necessary by management to present a fair statement  of the
results of operations, financial position and cash flows.  The  results reported
in these condensed consolidated financial statements  should not be regarded as
necessarily indicative of results that may be  expected for the entire year.

3.    Statement of Financial Accounting Standards  ("SFAS") No. 130, Reporting
Comprehensive Income, was adopted as of January 1, 1998. This Statement requires
reporting of changes in shareowners' equity that do not result directly from
transactions with shareowners. An analysis of these changes follows:
<TABLE>
<CAPTION>
                                                          THREE MONTHS ENDED
                                                     ------------------------------
                                                     SEPTEMBER            SEPTEMBER
                                                      26, 1998             27, 1997
                                                              (In millions)
                                                     ---------            ---------
<S>                                                  <C>                  <C> 
Net earnings......................................   $     930            $     568
Unrealized gains on investment securities - net...         130                  503
Foreign currency translation adjustments..........          26                    5
                                                     ---------            ---------
Total.............................................   $   1,086            $   1,076
                                                     =========            =========
 
 
                                                             NINE MONTHS ENDED
                                                      -----------------------------
                                                      SEPTEMBER           SEPTEMBER
                                                      26, 1997             27, 1998
                                                     ---------            ---------
Net earnings......................................   $   2,523            $   1,983
Unrealized gains on investment securities - net...         290                  745
Foreign currency translation adjustments..........          (7)                 (38)
                                                     ---------            ---------
Total.............................................   $   2,806            $   2,690
                                                     =========            =========
</TABLE>


                                       4
<PAGE>
 
ITEM 1.  FINANCIAL STATEMENTS (Continued).

4.    In June 1998, the Financial Accounting Standards Board issued SFAS No.
133, Accounting for Derivative Instruments and Hedging Activities (the
"Statement").  The Statement requires that, upon adoption, all derivative
instruments (including certain derivative instruments embedded in other
contracts) be recognized in the balance sheet at fair value, and that changes in
such fair values be recognized in earnings unless  specific hedging  criteria
are met. Changes in the values of derivatives that meet these hedging criteria
will ultimately offset related earnings effects of the hedged items; effects of
certain changes in fair value are recorded in other comprehensive income pending
recognition in earnings.   The Corporation will not adopt the Statement until
required to do so on January 1, 2000.

                                       5
<PAGE>
 
ITEM  2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF
          OPERATIONS.

OVERVIEW

Net earnings for the first nine months of 1998 were $2,523 million, a $540
million (27%) increase over the first nine months of 1997. The results reflected
the globalization and diversity of the Corporation's businesses and were led by
double-digit increases in Specialized Financing, Consumer Services, Specialty
Insurance and Mid-Market Financing activities. The Corporation's contribution to
its parent, General Electric Capital Services, Inc. ("GECS"), after payment of
dividends on its variable cumulative preferred stock, was $2,454 million, a $528
million (27%) increase over the comparable 1997 period.

Earnings of the lending, leasing and equipment management businesses are
significantly influenced by the level of invested assets, the related financing
spreads (the excess of rates earned -- yields -- over rates on borrowings) and
the quality of those assets.  The increase in net earnings for these businesses
reflected a higher average level of invested assets.  Financing spreads were
essentially the same in both periods, reflecting slightly lower yields offset by
lower borrowing rates.  Earnings for these businesses were also significantly
impacted by lower losses associated with the Corporation's equity investment in
Montgomery Ward Holding Corp.  ("MWHC").  This impact was partially offset by
lower gains recognized on sales of assets.

The increase in net earnings in the Specialty Insurance segment primarily
reflected improved earnings in the mortgage insurance business, the result of
improved market conditions, as well as increases in other insurance businesses.


OPERATING RESULTS

TOTAL REVENUES from all sources increased $6,012 million (25%) to $29,820
million for the first nine months of 1998, compared with $23,808 million for the
first nine months of 1997.

Revenues from the equipment management, consumer services, mid-market financing
and specialized financing businesses increased  $5,118 million (23%) over the
comparable prior-year period. A significant portion of the increase arose from
sales of goods by the computer equipment distribution businesses, reflecting
both acquisition and core growth.  The increase also reflected a higher average
level of invested assets, resulting principally from acquisitions of portfolios
and businesses, as well as increased premiums related to the acquisition of
consumer savings and insurance  businesses in 1997 and 1998.  Revenues were also
impacted by lower losses associated with the Corporation's equity investment in
MWHC.  This impact was partially offset by lower gains recognized on sales of
assets.

Revenues of the Specialty Insurance segment increased $679 million (36%) to
$2,588 million for the first nine months of 1998 compared with the first nine
months of 1997. The increase reflected higher investment income resulting from
continued growth in the investment portfolios and a higher level of gains on
investment securities as well as growth in origination volume. The increase also
reflected the 1997 contribution of assets of Consolidated Insurance Group, a
component of Consolidated Financial Insurance, from GECS to the Corporation.

INTEREST  EXPENSE  for the first  nine  months of 1998 was $6,129  million,  15%
higher  than for the first  nine  months of 1997.  The  increase  reflected  the
effects of higher  average  borrowings  used to finance asset  growth,  slightly
offset by the effects of lower average  interest rates.  The composite  interest
rate on the Corporation's borrowings for the first nine months of 1998 was 5.95%
compared with 6.02% in the first nine months of 1997.

OPERATING AND  ADMINISTRATIVE  EXPENSES  were $8,167  million for the first nine
months of 1998, a 23% increase over the first nine months of 1997.  The increase
primarily  reflected costs  associated  with businesses and portfolios  acquired
over the past year and higher investment levels.

INSURANCE LOSSES AND POLICYHOLDER AND ANNUITY BENEFITS increased $645 million to
$4,127  million for the first nine months of 1998,  compared with the first nine
months  of 1997.  The  increase  primarily  reflected  the  acquisitions  of the
consumer  savings  and  insurance  businesses  and  higher  origination  volume,
partially  offset  by  improved  market  conditions  in the  mortgage  insurance
business.

                                       6
<PAGE>
 
ITEM  2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS
          OF OPERATIONS (Continued).

PROVISION FOR LOSSES ON FINANCING  RECEIVABLES  increased to $1,044  million for
the first nine months of 1998 from  $1,020  million for the first nine months of
1997. These  provisions  principally  related to  private-label  and bank credit
cards in the Consumer  Services segment that are discussed below under Portfolio
Quality.

DEPRECIATION  AND  AMORTIZATION  OF BUILDINGS  AND  EQUIPMENT  AND  EQUIPMENT ON
OPERATING  LEASES  increased  $162 million to $1,913  million for the first nine
months of 1998 compared  with $1,751  million for the first nine months of 1997.
The  increase  was  principally  the  result of higher  levels of  equipment  on
operating leases, primarily reflecting acquisition growth.

PROVISION  FOR INCOME  TAXES was $991  million for the first nine months of 1998
(an effective tax rate of 28.2%),  compared with $775 million for the first nine
months of 1997 (an effective tax rate of 28.1%). The higher provision for income
taxes primarily reflected increased pre-tax earnings subject to statutory rates.


PORTFOLIO QUALITY

FINANCING  RECEIVABLES are the financing segment's largest asset and its primary
source of revenues. The portfolio of financing receivables, before allowance for
losses,  increased to $116.6 billion at September 26, 1998,  from $106.6 billion
at  the  end  of  1997,  primarily  reflecting  acquisition  growth  and  higher
origination volume, partially offset by securitizations of receivables and other
decreases  in the  credit  card  portfolios.  Related  allowances  for losses at
September 26, 1998,  aggregated $3.1 billion (2.63% of receivables - the same as
at the end of 1997) and, in management's  judgment,  are  appropriate  given the
risk  profile  of the  portfolio.  A  discussion  about the  quality  of certain
elements  of  the  portfolio  of  financing  receivables  follows.  "Nonearning"
receivables  are  those  that  are 90  days  or more  delinquent  (or for  which
collection has otherwise become doubtful) and "reduced-earning"  receivables are
commercial  receivables  whose terms have been  restructured  to a  below-market
yield. The following discussion of the nonearning and reduced-earning receivable
balances and write-off  amounts  excludes  amounts  related to  Montgomery  Ward
Holding Corp. and affiliates, which are separately discussed below.

CONSUMER  FINANCING  RECEIVABLES,  primarily  credit card and personal loans and
auto loans and leases,  were $48.4 billion at September 26, 1998, an increase of
$0.3 billion from the end of 1997.  Nonearning  receivables were $1.1 billion at
September 26, 1998, 2.3% of total consumer financing receivables,  compared with
$1.0  billion,  2.2% of  total  consumer  receivables,  at  December  31,  1997.
Write-offs  of consumer  receivables  increased to $1,052  million for the first
nine  months of 1998,  compared  with $912  million for the first nine months of
1997.  This increase was primarily  attributable  to higher  average  receivable
balances  resulting from a combination of origination volume and acquisitions of
businesses and portfolios as well as the effects of higher  delinquencies at the
end of 1997, consistent with overall industry experience.

OTHER FINANCING RECEIVABLES, totaling $68.2 billion at September 26, 1998 ($58.5
billion at December 31, 1997), consisted of a diverse commercial, industrial and
equipment  loan and lease  portfolio.  Related  nonearning  and  reduced-earning
receivables were $282 million at September 26, 1998,  compared with $353 million
at year-end 1997.

As discussed in the Corporation's Annual Report on Form 10-K for the year ended
December 31, 1997, Montgomer  Ward  Holding  Corp.  (MWHC) filed a bankruptcy
petition for reorganization in 1997. The Corporation's recorded investment in
MWHC and affiliates at September 26, 1998,  was $754 million,  a decrease of $41
million from the end of 1997,  and consisted  primarily of inventory  financing.
Income recognition had been suspended  on  these   pre-bankruptcy   petition
investments.  Subsequent to the petition,  the Corporation  committed to provide
MWHC up to $1.0 billion in  debtor-in-possession  financing,  subject to certain
conditions,  in order to fund working capital requirements and general corporate
expenses.  A majority of this facility has been syndicated;  the  Corporation's
loans under this facility at September 26, 1998 were approximately $119 million.
The  Corporation  also  provides  financing to customers of MWHC and  affiliates
through  the  Corporation's  wholly-owned  affiliates,  Montgomery  Ward  Credit
Corporation and Monogram Credit Card Bank of Georgia.  These receivables,  which
represent revolving credit card transactions directly with customers of MWHC and
affiliates,  aggregated  approximately  $3.4  billion  at  September  26,  1998,
including  $1.7 billion that have been sold with  recourse by the  Corporation's
affiliates.  The obligations of customers with respect to these  receivables are
not  affected  by the  bankruptcy  filing.  MWHC and its  affiliates,  under new
management  since 1997, are continuing  their  restructuring  efforts as well as
developing a plan of reorganization.

                                       7
<PAGE>
 
ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS
         OF OPERATIONS (Continued).

The Corporation held loans and leases to commercial airlines amounting to $9.6
billion at September 26, 1998, up from $9.0 billion at the end of 1997.

OTHER MATTERS

YEAR 2000

The inability of business  processes to continue to function correctly after the
beginning of the Year 2000 could have serious  adverse  effects on companies and
entities throughout the world. The Corporation has undertaken a global effort to
identify and mitigate Year 2000 issues in its information systems,  products and
services, facilities and suppliers as well as to assess the extent to which Year
2000 issues will impact its customers.  Each business has a Year 2000 leader who
oversees a multi-functional  remediation project team responsible for applying a
Six Sigma quality approach in four phases:  (1)  define/measure  -- identify and
inventory  possible  sources of Year 2000 issues;  (2) analyze -- determine  the
nature and extent of Year 2000 issues and develop project plans to address those
issues;  (3)  improve -- execute  project  plans and  perform a majority  of the
testing; and (4) control -- complete testing,  continue monitoring readiness and
complete necessary  contingency plans. The progress of this program is monitored
at each business,  and company-wide reviews with senior management are conducted
monthly.  Management  plans to have  completed  the  first  three  phases of the
program for a  substantial  majority of  mission-critical  systems by the end of
1998 and to have  nearly  all  significant  information  systems,  products  and
services,  facilities  and  suppliers  in the  control  phase of the  program by
mid-1999.

The  scope  of the  global  Year  2000  effort  encompasses  many  thousands  of
applications  and computer  programs;  products  and  services;  facilities  and
facilities-related equipment; suppliers; and, customers. Business operations are
also dependent on the Year 2000 readiness of  infrastructure  suppliers in areas
such as utility,  communications,  transportation  and other  services.  In this
environment,  there  will  likely be  instances  of  failure  that  could  cause
disruptions  in business  processes or that could affect  customers'  ability to
repay amounts owed to the Corporation. The likelihood and effects of failures in
infrastructure systems and in the supply  chain cannot be  estimated.  However,
with respect to operations under its direct control, management does not expect,
in view of its Year 2000 program  efforts and the  diversity of its  businesses,
suppliers  and  customers,  that  occurrences  of Year 2000 failures will have a
material  adverse  effect on the  financial  position,  results of operations or
liquidity of the Corporation.

Total Year 2000 remediation expenditures are expected to be approximately  $237
million, of  which  two-thirds  is  expected  to be  spent  by the end of 1998.
Substantially  all of the  remainder  is expected  to be spent in 1999.  Most of
these costs are not likely to be  incremental  costs,  but rather will represent
the redeployment of existing resources.

The activities involved in the Year 2000 effort necessarily involve estimates
and projections of activities and resources that will be required in the future.
These estimates and projections could change as work progresses.

                                       8
<PAGE>
 
EXHIBIT 12

       GENERAL ELECTRIC CAPITAL CORPORATION AND CONSOLIDATED AFFILIATES

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

                     NINE MONTHS ENDED SEPTEMBER 26, 1998
                                  (Unaudited)
<TABLE>
<CAPTION>

                                                              RATIO OF
                                                            EARNINGS TO
                                                           COMBINED FIXED              CHARGES
                                                              RATIO OF                   AND
                                                             EARNINGS TO              PREFERRED
                                                            FIXED CHARGES          STOCK DIVIDENDS
                                                                (Dollar amounts in millions)
                                                           ---------------         ---------------
<S>                                                      <C>                    <C>
Net earnings.........................................        $   2,523               $   2,523
Provision for income taxes...........................              991                     991
Minority interest in net
  earnings of consolidated affiliates................               35                      35
                                                             ---------               ---------
Earnings before provision for income taxes
 and minority interest...............................            3,549                   3,549
                                                             ---------               ---------
Fixed charges:
   Interest..........................................            6,266                   6,266
   One-third of rentals..............................              204                     204
                                                             ---------               ---------
Total fixed charges..................................            6,470                   6,470
                                                             ---------               ---------
Less interest capitalized,
   net of amortization...............................               65                      65
                                                             ---------               ---------
Earnings before provision for income taxes
   and minority interest, plus fixed charges.........        $   9,954               $   9,954
                                                             =========               =========
Ratio of earnings to fixed charges...................             1.54
                                                             =========

Preferred stock dividend requirements................        $      69
Ratio of earnings before provision for
   income taxes to net earnings......................                                     1.39
 Preferred stock dividend factor on
   pre-tax basis.....................................                                       96
Fixed charges........................................                                    6,470
                                                                                     ---------
Total fixed charges and preferred stock
   dividend requirements.............................                                $   6,566
                                                                                     =========
Ratio of earnings to combined fixed charges
   and preferred stock dividends.....................                                     1.52
                                                                                     =========
</TABLE>


For purposes of computing the ratios,  fixed charges  consist of interest on all
indebtedness and one-third of rentals, which management believes is a reasonable
approximation of the interest factor of such rentals.

                                       9
<PAGE>
 
                           PART II--OTHER INFORMATION

ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K.

a.  EXHIBITS.

    Exhibit 12.  Computation of ratio of earnings to fixed charges
                 and computation of ratio of earnings to combined
                 fixed charges and preferred stock dividends.

    Exhibit 27.  Financial Data Schedule (filed electronically only).

b.  REPORTS ON FORM 8-K.

    None.

                                       10
<PAGE>
 
                                   SIGNATURES

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


                                   GENERAL ELECTRIC CAPITAL CORPORATION
                                   ------------------------------------
                                              (Registrant)


Date: November 10, 1998             By:        /s/ J.A. Parke
                                       --------------------------------
                                                  J.A. Parke,
                                        Senior Vice President, Finance
                                          (Principal Financial Officer)


Date: November 10, 1998             By:        /s/ J.C. Amble
                                      ---------------------------------
                                                   J.C. Amble,
                                          Vice President and Controller
                                         (Principal Accounting Officer)

                                       11
<PAGE>
 
        GENERAL ELECTRIC CAPITAL CORPORATION AND CONSOLIDATED AFFILIATES

                               INDEX TO EXHIBITS


EXHIBIT NO.                                                      PAGE
-------------                                                   ------- 

  12      Computation of ratio of earnings to fixed charges
          and computation of ratio of earnings to combined
          fixed charges and preferred stock dividends......       9


  27      Financial Data Schedule (filed electronically only)


                                       12