diff --git a/_pytest/runner.py b/_pytest/runner.py
index 345080db0..3a6af4abc 100644
--- a/_pytest/runner.py
+++ b/_pytest/runner.py
@@ -333,10 +333,11 @@ class SetupState(object):
             fin = finalizers.pop()
             try:
                 fin()
-            except KeyboardInterrupt:
-                raise
-            except:
-                exc = py.std.sys.exc_info()
+            except Exception:
+                # XXX Only first exception will be seen by user,
+                #     ideally all should be reported.
+                if not exc:
+                    exc = sys.exc_info()
         if exc:
             py.builtin._reraise(*exc)
 
diff --git a/testing/test_runner.py b/testing/test_runner.py
index 8a6f4f839..4ca45ec40 100644
--- a/testing/test_runner.py
+++ b/testing/test_runner.py
@@ -58,6 +58,19 @@ class TestSetupState:
         assert err.value.args == ('oops',)
         assert r == ['fin3', 'fin1']
 
+    def test_teardown_multiple_fail(self, testdir):
+        # Ensure the first exception is the one which is re-raised.
+        # Ideally both would be reported however.
+        def fin1(): raise Exception('oops1')
+        def fin2(): raise Exception('oops2')
+        item = testdir.getitem("def test_func(): pass")
+        ss = runner.SetupState()
+        ss.addfinalizer(fin1, item)
+        ss.addfinalizer(fin2, item)
+        with pytest.raises(Exception) as err:
+            ss._callfinalizers(item)
+        assert err.value.args == ('oops2',)
+
 
 class BaseFunctionalTests:
     def test_passfunction(self, testdir):