The episode opens with two people wheeling what looks like a cadaver into a dank laboratory-style area. Really, it's Fish Mooney, who is blindfolded and bound. They tell her that Bob will be taking care of her, and he approaches.
At a crime scene, Bullock and Gordon discuss Fish; her bar was shot up with blood everywhere, but no sign of her.
There's a body hung from a ceiling; it's a drug dealer named Littlefield from the Uptown Assassins, according to a cop named Flass. When he leaves, Bullock walks him out and Gordon inspects the body. There's a compartment in the heel of the dealer's shoe with something stashed away.
A night janitor named Leon comes out and volunteers information, telling the police that he's happy to help...although he's reluctant to go to the precinct and work with a sketch artist.
Later, he's in an interview room on the phone when a man comes and asks whether the sketch artist has come in yet. When Leon tells him no, the man stabs him in the back with an ice pick, killing him.
Later, Nigma reveals that the murder weapon is the same as the one that killed Littlefield earlier. Gordon susses out that it's a cop.
At the interrogation room where Bob is dealing with Fish, she's uncooperative and the two are abusing one another. In a van, two of Falcone's men are carrying Butch away to toss him in an incinerator. Of course, one goes on ahead to prep the machine, leaving Butch alone with the other; when the first man returns, the second man is dead and then Butch forces him to disclose where they're keeping Fish.
Gordon tells Essen that it's probably a cop who turned off the security cameras. Essen and Bullock both object but he goes ahead anyway.
Driving around downtown Gotham, Bruce and Alfred are looking for Selina. Bruce gets out of the car and insists on walking around the block to find her. They don't see her, but run into Ivy, who demands $20 for delivering a message to Selina that Bruce is searching for her.
Back at Selina's interrogation, she's ranting at Bob and Bob is playing it cool, eventually bringing out power tools, rejecting them and bringing out a ball peen hammer. He's attacked and beaten severely by Butch.
At the police department, Gordon is asking around to find out who was guarding the interrogation cell; the log book page is missing and everyone is protecting the dirty cop.
Gordon asks Bullock for help getting leverage. Gordon singles out one cop, telling him he's going to get fired. When they convince him they have a testimony against him, he rolls over on a cop named Delaware. Gordon chases him to the garage, where the two get into a fight and Gordon handcuffs him. He searches the man's car, opening the trunk, and finds a group of what appear to be LSD tabs, which match the design he pulled from the drug dealer's heel.
In Essen's office, everyone is upset with Gordon after he throws the dirty cop into a cell in front of everyone. Flass is there, and claims that the guy was working undercover for him; Essen hands the case off to Internal Affairs.
Nigma heads down to records to talk to Kristen Kringle, giving her a card. She reluctantly accepts it and leaves.
Fish wakes up in a run-down apartment, apparently Butch's or a safe house. He gives her an ice pack for her face, and she asks for some food, and thanks him for saving her. He tells her they should hit the road, but she wants to hunt down Penguin and won't leave the city until she kills him.
At the club, Penguin brings his mother and tells her that he will be in charge of it soon. She's thrilled and proud.
At a diner, Bullock tells Gordon that Flass has been running drugs for years since they started arresting drug dealers and taking over their stashes; he says Flass is protected. Gordon wants to know the location of a stash house and Bullock reluctantly makes a call.
The pair make their way to a stash house in the back of an old factory, where Delaware is packing up a box. After his men rough up Gordon and Bullock, he produces a warrant signed by the commissioner and a judge to clear the building.
At the office, Essen tells Gordon that IA has ruled the witness's death a suicide. She says the commissioner was involved and there's no way Gordon can get results in this.
Gordon tells Bullock he'll be back in an hour.
In the records room, Flass is reading Nigma's card to an audience of laughing cops. Eddie is obviously hurt by Kringle's betrayal.
At the club, Penguin is watching his mother dance with one of the employees when Gordon comes in to see him. He asks for help tracking down with whom Flass is in league. Oswald says the name is familiar. Gordon asks him to find someone with the goods on Flass, and Penguin says he'll do it; that Gordon doesn't owe him anything, since they're friends, and no one will get hurt.
Zsasz and his women make their way to the interrogation lair, where they find Bob choking on his own blood, mostly dead. Zsasz shoots him in the head.
Penguin's mother is drunk, so he asks one of his men to take her hom on the way to doing Gordon's favor. After they've gone, he empties most of a bottle of champagne into himself, spitting some of it at the big fish-shaped sign in the club. As he's tipsy and talking to an imaginary audience from the club's stage, Butch and Fish come to see him, carrying a bat.
At Wayne Manor, Bruce is practicing Chess with himself when Selina comes to visit. He gives her a paper bag that he had been carrying around earlier; it's a present from hsi trip to Switzerland; a snowglobe that looks like the town where he and Alfred were staying. He invites her to stay at Wayne Manor and help him find the murderer. She's excited about the snow globe but then repulsed by the offer and tells him that he's bothering her, that they aren't friends. She tells him that she didn't really see who killed his parents.
Penguin's man has Delaware with a gun to his head, and is holding his wife underwater in her tub. He admits to the role Flass played in the killings.
At the club, Penguin first tries to beg and when that doesn't work tells Mooney that she was a fool for not seeing that he was working with Falcone the whole time. Before she can kill him, Zsasz comes in gunning for she and Butch. In the ensuing gunfight, Butch kills one of Zsasz's women. Ultimately, Fish is able to escape through a window too narrow for Butch. Rather than killing Butch, though, Zsasz and the remaining two girls "take him home to play with."
At the police department, Kringle comes to see Nigma in his lab, to apologize for Flass's behavior. She tells him that she didn't give up the card; Flass found it in her desk. When Nigma turns to talk to her, she jumps and runs, but her behavior has given him hope.
Penguin's man comes into the police department and delivers Gordon the murder weapon and a tape of Delaware rolling over on Flass; he'd kept the ice pick in case he needed it.
At Wayne Manor, Bruce has shattered the snowglobe against the fireplace and is crying. Alfred comes to ask him what's up and Bruce says Selina was lying. After a little tough love from Alfred, he stops crying and returns to his murder investigation.
At the police department, Gordon places Flass under arrest, revealing the murder weapon and the tape.he tries to intimidate Jim with the four guys around him, saying that this is his house; when Gordon tells him that he doesn't deserve the badge and this isn't his house, Gordon turns to the rest of the cops in the station and asks for backup. Essen leadsd a charge, with more than a dozen cops surrounding him before Essen arrests him herself. Nigma is visibly pleased and Gordon thanks her, but Flass's men stare him down.
At the Port of Gotham, Fish and Bullock get out of his car; she's going to leave town, lay low for a while, come back and kill Penguin when the time is right. He tells her that she shouldn't come back. She tells him that he will see her again, and asks him to find Butch and help him if he's alive. He promises he will. The two kiss.
As he's on his way to his car, Delaware approaches Gordon, ranting and begging him to keep his wife and kids out of their conflict.