The Five Dumbest Things on Wall Street This Week

3. BP's Browne-Out

BP's (BP Quote) safety record got another scratch this week.

An independent panel issued a report Tuesday outlining safety shortfalls at BP's U.S. refineries. The panel, led by former Secretary of State James Baker, says the London-based oil giant has pursued goals including cost-cutting at the expense of safety.

The Baker investigation was spurred by a March 2005 explosion that killed 15 workers in Texas City, Texas. BP has since accepted responsibility for the episode and set aside $1.6 billion for victim compensation.

This week, BP pledged to adopt recommendations calling for "a positive, trusting, and open process safety culture within each U.S. refinery."

One positive step came when longtime CEO John Browne agreed to accelerate his retirement. He had been due to stick around through next year, but the company said last Friday that he'll depart in July, in the name of an orderly transition.

Though the company trumpeted Browne's "managerial skill," it's plain to see BP hasn't been managed very well lately. Since the Texas City explosion, BP has been hit by pipeline breaks, oil spills and a federal investigation of propane-trading irregularities. Shares have sunk 20% from their all-time high in May.

You'd hardly know any of this to listen to BP, though.

"John Browne is the greatest British businessman of his generation," BP Chairman Peter Sutherland said in a statement. "His vision, intellect, leadership and skill have been a wonder to behold and he will be a difficult act to follow."

Not to mention a pain to clean up after.

Dumb-o-Meter score: 85. It seems safe to say change at the top was overdue.