diff --git a/IPython/terminal/console/interactiveshell.py b/IPython/terminal/console/interactiveshell.py
index bd135cf..70559e9 100644
--- a/IPython/terminal/console/interactiveshell.py
+++ b/IPython/terminal/console/interactiveshell.py
@@ -25,11 +25,6 @@ import base64
 
 from Queue import Empty
 
-try:
-    from contextlib import nested
-except:
-    from IPython.utils.nested_context import nested
-
 from IPython.core import page
 from IPython.utils.warn import warn, error
 from IPython.utils import io
@@ -303,8 +298,8 @@ class ZMQTerminalInteractiveShell(TerminalInteractiveShell):
         raw = base64.decodestring(data[mime].encode('ascii'))
         imageformat = self._imagemime[mime]
         filename = 'tmp.{0}'.format(imageformat)
-        with nested(NamedFileInTemporaryDirectory(filename),
-                    open(os.devnull, 'w')) as (f, devnull):
+        with NamedFileInTemporaryDirectory(filename) as f, \
+                    open(os.devnull, 'w') as devnull:
             f.write(raw)
             f.flush()
             fmt = dict(file=f.name, format=imageformat)
diff --git a/IPython/terminal/embed.py b/IPython/terminal/embed.py
index ed0becb..2a956b0 100644
--- a/IPython/terminal/embed.py
+++ b/IPython/terminal/embed.py
@@ -27,13 +27,6 @@ from __future__ import with_statement
 import sys
 import warnings
 
-# We need to use nested to support python 2.6, once we move to >=2.7, we can
-# use the with keyword's new builtin support for nested managers
-try:
-    from contextlib import nested
-except:
-    from IPython.utils.nested_context import nested
-
 from IPython.core import ultratb, compilerop
 from IPython.core.magic import Magics, magics_class, line_magic
 from IPython.terminal.interactiveshell import TerminalInteractiveShell
@@ -251,7 +244,7 @@ class InteractiveShellEmbed(TerminalInteractiveShell):
         # actually completes using the frame's locals/globals
         self.set_completer_frame()
 
-        with nested(self.builtin_trap, self.display_trap):
+        with self.builtin_trap, self.display_trap:
             self.interact(display_banner=display_banner)
         
         # now, purge out the local namespace of IPython's hidden variables.
diff --git a/IPython/terminal/interactiveshell.py b/IPython/terminal/interactiveshell.py
index 32a6c17..3a7c93a 100644
--- a/IPython/terminal/interactiveshell.py
+++ b/IPython/terminal/interactiveshell.py
@@ -19,13 +19,6 @@ import bdb
 import os
 import sys
 
-# We need to use nested to support python 2.6, once we move to >=2.7, we can
-# use the with keyword's new builtin support for nested managers
-try:
-    from contextlib import nested
-except:
-    from IPython.utils.nested_context import nested
-
 from IPython.core.error import TryNext, UsageError
 from IPython.core.usage import interactive_usage, default_banner
 from IPython.core.inputsplitter import IPythonInputSplitter
@@ -429,7 +422,7 @@ class TerminalInteractiveShell(InteractiveShell):
         internally created default banner.
         """
 
-        with nested(self.builtin_trap, self.display_trap):
+        with self.builtin_trap, self.display_trap:
 
             while 1:
                 try:
diff --git a/IPython/utils/nested_context.py b/IPython/utils/nested_context.py
deleted file mode 100644
index 46cbafb..0000000
--- a/IPython/utils/nested_context.py
+++ /dev/null
@@ -1,50 +0,0 @@
-"""Backwards compatibility - we use contextlib.nested to support Python 2.6,
-but it's removed in Python 3.2."""
-
-# TODO : Remove this once we drop support for Python 2.6, and use
-# "with a, b:" instead.
-
-import sys
-
-from contextlib import contextmanager
-
-@contextmanager
-def nested(*managers):
-    """Combine multiple context managers into a single nested context manager.
-
-   This function has been deprecated in favour of the multiple manager form
-   of the with statement.
-
-   The one advantage of this function over the multiple manager form of the
-   with statement is that argument unpacking allows it to be
-   used with a variable number of context managers as follows::
-
-      with nested(*managers):
-          do_something()
-
-    """
-    exits = []
-    vars = []
-    exc = (None, None, None)
-    try:
-        for mgr in managers:
-            exit = mgr.__exit__
-            enter = mgr.__enter__
-            vars.append(enter())
-            exits.append(exit)
-        yield vars
-    except:
-        exc = sys.exc_info()
-    finally:
-        while exits:
-            exit = exits.pop()
-            try:
-                if exit(*exc):
-                    exc = (None, None, None)
-            except:
-                exc = sys.exc_info()
-        if exc != (None, None, None):
-            # Don't rely on sys.exc_info() still containing
-            # the right information. Another exception may
-            # have been raised and caught by an exit method
-            raise exc[0], exc[1], exc[2]