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In Language Ref section 7 "Compound Statements":
http://docs.python.org/release/3.1.3/reference/compound_stmts.html
there's a footnote regarding what happens to unhandled exceptions in a try-except statement:
[1] The exception is propagated to the invocation stack only if there is no *finally* clause that negates the exception.
This is very unclearly worded, especially since the reader in need of this footnote is probably familiar with the *except* clause being the one to "negate" an exception, and may well think this footnote is in error. This footnote could provide a more convincing explanation: 
[1] The exception is propagated to the invocation stack unless there is a finally clause which happens to raise another exception. That new exception causes the old exception to be lost.