Sima Daozi, as regent, greatly trusted Wang Guobao and his cousin Wang Xu (王緒) because of their flattery, and his regency quickly developed a reputation for being corrupt and incompetent. Wang Gong, whom Emperor Xiaowu entrusted with the armies of the northeastern part of the empire, considered starting a rebellion to overthrow Wang Guobao and Wang Xu. In 397, Wang Guobao and Wang Xu suggested to Sima Daozi that the armies that Wang Gong and Yin Zhongkan were in charge of be reduced; Wang Gong and Yin, who was in command of the western provinces, in response, mobilized their forces and declared that Wang Guobao and Wang Xu should be executed. Sima Daozi, in fear, forced Wang Guobao to commit suicide and executed Wang Xu. Wang Gong and Yin then retreated. From this point on, Sima Daozi trusted no one but his teenage heir apparent, Sima Yuanxian, and entrusted the capital guards to Sima Yuanxian. He also gave military commands to his distant relatives Sima Shangzhi (司馬尚之) the Prince of Qiao and Sima Shangzhi's brother Sima Xiuzhi, as well as Wang Yu (王愉), in 398.