- Falcone Imports is under siege by the Penguin. Batman sees this is a sign that the Falcones have lost some of their footing in the Gotham underworld. Batman jumps into the fray, cornering Penguin and demanding to know where Two-Face is. Penguin refuses to answer, more afraid of Two-Face than Batman.
- On the GCPD roof, Gordon, Gustavson, and O'Conner assemble the rest of their Special Task Force: Julia Lopez, David King, and Laureen Wilcox. Gordon tells the team that their goal is to dismantle Gotham's powerful crime families. For now, they will investigate the Hangman. Gordon assigns each of them to investigate one of the Hangman's victims, Gustavson gets O'Hara, Lopez gets Loeb, King gets Flass, O'Connor gets Branden, and Wilcox gets Pratt.
- Sofia and Mirti are discussing the Penguin's attack and the Maronis' recent alliance with Lucia Viti when they discover that they have been locked out of the Penthouse. Mario tells Sofia that he knows about Zucco's smuggling operation at the shipyard, and that the Falcone name can no longer be associated with illegal activities. He is freezing her assets and kicking her out of the Penthouse.
- After Sofia has left, an unknown figure tells Mario that Sofia will now go to the only place that will take her in. Mario tells the contact that he does not want his name associated with any of this.
- In the Gotham Sewers, Joker tells Two-Face that Penguin has been captured. Two-Face seems indifferent to the news, leading Joker to suspect that he and the other Arkham escapees are nothing more than expendable pawns. He pulls a gun on Two-Face, demanding to let him in on his plans. Two-Face reminds him why he is in charge.
- Batman goes to the former Dent residence hoping to find more clues to Two-Face's whereabouts, and his connection to the Hangman killings. Instead, he finds GCPD Commander Merkel's body hanging from a tree with a Hangman puzzle reading "Jury of your peers" scrawled into it. Without warning, the Special Task Force arrives. Believing Batman to be the killer, they draw their weapons and demand his surrender.
