 In September 2007, McGee was reportedly "routinely waiving aside risk limits on all manner of deals".As the 2008 financial crisis intensified and Lehman suffered its first net loss, McGee led the executive committee to convince Chairman and CEO Richard Fuld to oust Gregory and CFO Erin Callan; Callan had previously worked under McGee just six months ago.On June 12, 2008 Gregory was replaced as president and COO by Bart McDade, who had been previously serving as head of Equities.