Writer: John Layman
Batman is getting Arkham Asylum back under control after Joker took it over and is forced to let Penguin go free as he can't prove Penguin did anything wrong. He also finds out that Zsasz has escaped.
Batman mourns Damian's death, then begins searching for Zsasz. He is interrupted by reports of shots fired at the Iceberg Lounge. Penguin is attacking, trying to retake his empire from his former assistant, Ogilvy, now calling himself Emperor Penguin.
Batman arrests Penguin as Ms. Volkova gives Ogilvy the Man-Bat serum in exchange for his protection from Talia.
Flashback: Victor Zsasz lost his inheritance from Zsasz Industries gambling at the Iceberg. He went insane, became a killer, and now wants revenge on the Penguin.
When Joker took over Arkham, Zsasz was about to kill Penguin, but Joker sent Zsasz into the city to start killing and stirring up chaos.
Afterward, when Zsasz goes to the Iceberg to collect his fortune from Penguin, he finds Ogilvy in charge. Ogilvy gives him an ancient blade and bring him under his employ.