John McCain today said he was “entertained” that Barack Obama is flirting with the idea of opting out of public financing should he win the Democratic nomination. “He didn’t talk about having discussions about third parties and all that when he committed to saying that he would take public financing if the Republican nominee did. I am the presumptive Republican nominee. I will take public financing. Keep your word to the American people. He’s always talking in his speeches about how we need to keep our word to the American people. Please keep your word to the American people on the commitment you made in writing,” McCain said forcefully, adding later that Obama had flip-flopped on the issue.

McCain was referring to the pledge the two candidates signed and submitted to the Federal Elections Commission last March, that would limit their funds to $85 million as general election candidates. But at a fundraiser the Tuesday night in Washington, DC, Obama referred to a “parallel public financing system” and called the current system “creaky” today at a press avail.

If Obama continues his record shattering fundraising prowess, McCain would face a huge financial handicap in the general election, which is why should Obama go forward and reject public funds, McCain admitted he would have to examine his options. “It is possible that I still will [accept public funds] and it’s possible that I won’t.” How will he decide? “Actually, a little straight talk, how we most benefit. I mean, you know, really how it is most beneficial to us,” McCain told reporters today.

Watch some of his comments from his Dallas press conference here:

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When asked if he agreed with Obama’s assessment that the current system is “creaky” and needs to be reformed, McCain shot back, “I have a record on reform, Senator Obama has rhetoric on reform. But I think it needs further reform and I’d be glad to join him in efforts to reform, but that doesn’t change the fact that he committed, a year ago, to public financing if I would.”

Washington, DC — Arguing that Sen. McCain is engaged in the “height of hypocrisy” by reversing his decision to take public financing during the primary season, Democratic National Committee officials said they plan to file a complaint Monday with the Federal Election Commission.

The McCain campaign applied for federal matching funds last year but never received any FEC cash and maintains that they were on firm legal ground when they decided to withdraw from the system earlier this month. FEC spending limits would severely hamstring McCain until the RNC convention compared with Sen. Clinton or Sen. Obama–neither of whom is taking public money.

However, the DNC announced that they intend to ask the FEC to investigate whether the campaign is violating any laws by opting out of the system.

“The crucial issue here is John McCain’s integrity. John McCain poses as a reformer but seems to think reforms apply to everyone but him,” DNC Chairman Howard Dean said on a media conference call Sunday. “He used taxpayer money to guarantee a loan so he could raise money from lobbyists and special interests - it’s the height of hypocrisy. This is just the latest example of his do as I say, not as I do double standard, and it’s unlikely to be the last. McCain financially benefited from this legally binding contract - he got free ballot access, saving him millions of dollars, and he secured a $4 million line of credit to keep his campaign afloat by using public financing as collateral. He should follow the law.”

In response, the McCain campaign is calling Dean’s criticism as “absurd,” arguing there is precedent for their decision and also disputing his assertion that they used their existing request for FEC funds as collateral for a loan. See Letter E of their loan request.

The campaign is also pointing out what they call “Howard’s Hypocrisy,” noting that Dean also pulled out of the FEC system after initially applying for public funds during his 2004 presidential bid. (See McCain campaign research after jump)

“Howard Dean’s hypocrisy is breathtaking given that in 2003 he withdrew from the matching funds system in exactly the same way that John McCain is doing today,” McCain Spokesman Brian Rogers said in a statement.

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