Gotham begins with members of Penguin’s underworld squabbling. He shoots a gun into the air to bring order and demands to know who arranged the escape from Arkham. He admonishes them for not knowing and tells them they must restore order in “business.” He declares there will be no more chaos in the street and everything is to go through him. He dismisses them and meets Tabitha, who asks he speak with her brother alone. At the precinct, Captain Nathaniel Barnes demands the attention of his officers. He tells them they should feel ashamed and angry and demands anyone who is not to resign! He pulls out the files of a number officers and fires them for the crimes they have done. He arrests one when he protests. Capt. Barnes warns them he will incarcerate any officer who breaks the law or turns a blind eye. Jim is impressed, and speaks to him privately. He tells him he agrees with everything he has said. Barnes describes him as a “troublemaker,” making him his second in command. Jim warns him he has his work cut out for him. Harvey tries to convince Jim that Barnes will not work out.
Penguin and Theo meet, there he learns he is behind the Arkham break out when he sees Barbara. Tabitha insults him, calling him the “King of Garbage.” He warns her not to underestimate him. Theo diffuses the situation by showing his plan for Gotham’s residential areas and tries to enlist his help with his plans. Penguin turns him down, not believing in his plan. Theo tries to get him to kill his opponents, but he again refuses. They show him they have captured his mother.