Back at the police station, Essen updates the cops on the escapees, telling them that Gruber, The Electrocutioner’s name, is an alias. Jim comes to lay claim to his case and Essen tells him to leave, that the commissioner is coming. It’s too late, though, and the commissioner both finds him and then brings Gordon and Bullock back to talk in private.
At Irwin’s, there’s a big lab that he’s left intact for The Electrocutioner, who turns his machines back on and then kills Irwin for double-crossing him and getting him sent to Arkham.
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Cut to a family in mourning; it’s a family at a wake in sepia tone, with a patriarch on a table in the center of a room. Flash forward and a boy in the room is Don Falcone, who has two of his men killing someone who is begging for his life. He stands in the street and tells Liza about how long he’s worked to be where he is; he tells her that she needs to go find a young man, get married and have babies. He tells her that he would be willing to set her up with a legitimate business of some kind so that she can be independent. She declines, saying she would rather be with him, and puts a flower in his lapel.
He leaves her and goes to his car, and she watches after him nervously.
He goes to see Miss Kringle, his crush, who brings him a cupcake he had left on her desk with a live bullet baked into it. She tells him it’s creepy and inedible, and hands it back to him; he protests that it’s a riddle.
Buchinsky had partners who were never found; that’s where they will start investigating.
Uniformed officers find the stolen Arkham van on patrol, near Irwin’s Electronics. Gordon and Bullock go to investigate, finding the body of the guard and that Irwin is there writing “I will not betray my friends” on the wall in a trance.
Liza is pulled off the street, apparently by kidnappers, with a bag over her head. It turns out it’s Fish, who is going to make her move on Falcone. She calls him masking her voice electronically and indicating that she has Liza.
Penguin receives a call while the Maroni clan are at dinner together. It’s Falcone, who tells him someone has taken Liza. Penguin believes this gives him leverage against Fish, and goes to see Falcone, saying that his mother is sick.
Before he can go, though, he’s blasted by The Electrocutioner, who then deploys an electrical grenade of some kind in the restaurant.
Penguin wakes up briefly, stammering that he must be going for urgent business with Falcone.
Maroni, one of his men and Penguin all head to the police department.
Barbara gets out of a taxi and enters a mantion, where her parents live (the butler doesn’t recognize her). Her parents are cold and distant, but polite. She hopes to stay with them for a few days. They’re apprehensive, but agree.
They ask how Gordon is, and she tells them he’s well, that they’re very happy.
At the police department, Maroni is holding court. Bullock wonders why Gordon is using him as bait in the department instead of elsewhere. Gordon says that it’s the best-defended spot in Gotham. Penguin wakes up and is confronted about what he said by Maroni.
At Falcone’s home, Zsasz asks permission to go to work. Falcone says no, maybe it’s time to retire after all, since he doesn’t know what he’s fighting for. Zsasz tells him that he’s fighting for respect, but Falcone rejects it. He says that why not go live in the country with Liza, if that’s what they want and also something that would make him happy. Zsasz begs him not to talk that way; he says he can take out Fish’s crew on his own. Falcone says his job is to keep Falcone and Liza safe through the coming transaction.
Nigma goes to see Miss Kringle, tells her the answer to his bullet-in-the-cupcake riddle and gets chased off by another cop. In an alley behind the building, Buchinsky is trying to gain entry into the building. Penguin swears his allegiance to Maroni and Maroni tells him to go ahead to see his mother, but there’s an electrical attack on the building, knocking everyone out except Gordon and his galoshes.
In the dark, The Electrocutioner and Amygdala find Maroni. Gordon pulls a gun on them but is disarmed by a blast from Buchinsky’s harness. Gordon subdues Amygdala and, while Buchinsky is monologuing, splashes a cup of water on his machine, shorting it out. There’s a ceremony, where the commissioner awards him his shield back.
Penguin arrives to see Falcone, who tells him that he was right about Fish. Penguin tells him that Liza was planted by Fish as a setup. Falcone slaps him, and then demands he prove it. Penguin says he can’t, but Falcone says he’s wrong. Penguin asks when he has been wrong.
The phone rings: it’s Fish, who tells him that they will meet at the club in an hour. He says he’ll be there.
He comes to the club to see her, and Fish assures him that she just needs him to sign papers relinquishing control of the family and then they’re free to leave. She says she’s offering him a way out, but he insists on seeing her before he signs anything. Fish dismisses him, saying she’s fine, but he says he needs to see her or no deal.
Butch brings her in and she crosses to Falcone, who asks if she’s alright. He asks her how long she’s known Fish. When he can tell she’s lying, he lays bare the fact that he’s been tipped off, and he’s ashamed of his stupidity. Zsasz and his people come in, taking Fish, Liza and Butch at gunpoint.
Falcone tells Liza that he’s sorry she got mixed up in all this, and then strangles her to death, and leaves the flower from his lapel on her body. Falcone says that he has killed all of Fish’s people, and that he wants her and Butch alive for now — but that they’re to be locked up so they can suffer for betraying the memory of his mother. He brings The Penguin in, revealing him as the one who sold her out, and tells Penguin to say his goodbyes quickly. He tells Fish hello and smiles.
Dr. Thompkins stops at the police department to get the doll and see Gordon. He’s in the locker room, and she’s surprised to find that he’s between places. She goes to leave and he stops her, kissing her. An officer comes to say there’s been a shootout at Fish Mooney’s place.
