Brain teaser: Why isn't this catching Exception?

  
module API
  module ServiceCall
    protected
      
    def service_call(&block)
      begin
        puts "in begin block"
        raise "exception occurred here"
        parse_response(yield) if block_given?
      rescue Exception => e
        puts "in the rescue block"
        api_exception = API::Exception.new(e.message)
        api_exception.set_backtrace(e.backtrace)
        raise api_exception
      end
    end           
  end
end