Back at some corner store, Billy is having lunch while two Italian guys try to shake down the storeowner for money.
Billy walks over to the register and tries to make small talk with the Italians. Then he loses it on them and beats them both to a pulp, breaking his hand in the process.
In a restaurant, Colin hangs out with Madolyn, and the date seems to be going well. Colin wants to know how messy Madolyn's job gets—you know, with all the feelings people pour out in her office. He also gets a second date with her by knowing the answer to a trivia question about what Sigmund Freud said about the Irish. The answer? Freud said the Irish were the only people completely unreceptive to psychoanalysis.
Now we're back in the Southie bar with Billy drinking a cranberry juice. The place falls silent as Frank Costello walks in and sits down beside him. Costello asks Billy if he knows who he is, but Billy pretends not to know. Costello then implies that he is the dude who runs the Southie neighborhood.
Frank polishes off a shot and tells Billy to come with him to a back room. As they go back, Frank explains how the mafia keeps trying to hone in on his territory; he says he's sick of it.
Frank also explains that the two guys Billy beat up in the convenience store are mafia dudes who will soon come back to Southie and kill him (Billy, that is). The only person who can stop them is Frank, so Frank asks Billy if he wants Frank to stop them.
Billy asks if this is something he can handle personally, which just draws a bemused look from Frank and Mr. French. It's clear to us that Billy is playing dumb, but Frank and French seem to think that he really doesn't understand how beating up two mafia guys might be a big deal.
While Mr. French searches Billy, Frank mentions that he knew Billy's father. He says that the old man could have been a real somebody, but he was too stubborn about living an honest, crime-free life.
At this point, Costello has Mr. French break the cast off of Billy's arm, and then Costello starts wailing on the arm with Billy's boot while asking him if he's still in the police force. Billy denies it until Frank is satisfied. Then Frank throws a bunch of cash at Billy and tells him to go get his hand checked out again.