Newly appointed Cardinal Farnese is placed in the Treasury and quickly discovers Versucci’s theft. Micheletto is sent to find the wayward Cardinal. Meanwhile, upon hearing of Venice’s request for help, Alexander, seeing this as an opportunity to replenish the coffers, dramatically calls for a Crusade. The Cardinals participate in the „banquet of chestnuts”. Elsewhere, King Ferdinand learns that Lucrezia and Alfonso’s marriage has not been consummated.