US: T Boone Pickens: 'Honey, I shrunk the charity'

It was a historic pledge. In 2006, oilman T Boone Pickens donated $165 million to Oklahoma State for its sports programme. It was the largest gift of its kind ever to a US university, reports the Wall Street Journal blog. But it came with a catch: the money had to be invested in Pickens' hedge fund, BP Capital.

Initially, the requirement seemed a stroke of genius. The money swelled to more than $300 million, at which time some university officials urged the school (unsuccessfully) to take money off the table. The money stayed in. And when oil prices plunged, so did Mr. Pickens' fund. It was down $1 billion as of late September.

Some bloggers started chattering that the gift had been wiped out. Last week Pickens announced he would be returning $125 million of the funds to the university. He also pledged an additional $63 million so the university could finish the promised athletic projects. Oklahoma State boosters praised Pickens for his continued largesse in a time of crisis.
Full report on the Wall Street Journal blog