diff --git a/IPython/nbconvert/filters/markdown.py b/IPython/nbconvert/filters/markdown.py
index e7e0154..6c3b78c 100755
--- a/IPython/nbconvert/filters/markdown.py
+++ b/IPython/nbconvert/filters/markdown.py
@@ -1,18 +1,11 @@
 """Markdown filters
+
 This file contains a collection of utility filters for dealing with 
 markdown within Jinja templates.
 """
-#-----------------------------------------------------------------------------
-# Copyright (c) 2013, the IPython Development Team.
-#
+# Copyright (c) IPython Development Team.
 # Distributed under the terms of the Modified BSD License.
-#
-# The full license is in the file COPYING.txt, distributed with this software.
-#-----------------------------------------------------------------------------
 
-#-----------------------------------------------------------------------------
-# Imports
-#-----------------------------------------------------------------------------
 from __future__ import print_function
 
 # Stdlib imports
@@ -34,9 +27,7 @@ from IPython.utils.process import get_output_error_code
 from IPython.utils.py3compat import cast_bytes
 from IPython.utils.version import check_version
 
-#-----------------------------------------------------------------------------
-# Functions
-#-----------------------------------------------------------------------------
+
 marked = os.path.join(os.path.dirname(__file__), "marked.js")
 _node = None
 
@@ -72,11 +63,12 @@ def markdown2latex(source):
     return pandoc(source, 'markdown', 'latex')
 
 class MathBlockGrammar(mistune.BlockGrammar):
-    block_math = re.compile("^\$\$(.*?)\$\$")
-    block_math2 = re.compile(r"^\\begin(.*?)\\end")
+    block_math = re.compile("^\$\$(.*?)\$\$", re.DOTALL)
+    latex_environment = re.compile(r"^\\begin\{([a-z]*\*?)\}(.*?)\\end\{\1\}",
+                                                re.DOTALL)
 
 class MathBlockLexer(mistune.BlockLexer):
-    default_features = ['block_math', 'block_math2'] + mistune.BlockLexer.default_features
+    default_features = ['block_math', 'latex_environment'] + mistune.BlockLexer.default_features
 
     def __init__(self, rules=None, **kwargs):
         if rules is None:
@@ -90,7 +82,12 @@ class MathBlockLexer(mistune.BlockLexer):
             'text': m.group(1)
         })
 
-    parse_block_math2 = parse_block_math
+    def parse_latex_environment(self, m):
+        self.tokens.append({
+            'type': 'latex_environment',
+            'name': m.group(1),
+            'text': m.group(2)
+        })
 
 class MathInlineGrammar(mistune.InlineGrammar):
     math = re.compile("^\$(.+?)\$")
@@ -104,7 +101,7 @@ class MathInlineLexer(mistune.InlineLexer):
         super(MathInlineLexer, self).__init__(renderer, rules, **kwargs)
 
     def output_math(self, m):
-        self.renderer.inline_math(m.group(1))
+        return self.renderer.inline_math(m.group(1))
 
 class MarkdownWithMath(mistune.Markdown):
     def __init__(self, renderer, **kwargs):
@@ -117,6 +114,9 @@ class MarkdownWithMath(mistune.Markdown):
     def parse_block_math(self):
         return self.renderer.block_math(self.token['text'])
 
+    def parse_latex_environment(self):
+        return self.renderer.latex_environment(self.token['name'], self.token['text'])
+
 class IPythonRenderer(mistune.Renderer):
     def block_code(self, code, lang):
         if lang:
@@ -137,6 +137,9 @@ class IPythonRenderer(mistune.Renderer):
     def block_math(self, text):
         return '$$%s$$' % text
 
+    def latex_environment(self, name, text):
+        return r'\begin{%s}%s\end{%s}' % (name, text, name)
+
     def inline_math(self, text):
         return '$%s$' % text
 
diff --git a/IPython/nbconvert/filters/tests/test_markdown.py b/IPython/nbconvert/filters/tests/test_markdown.py
index 0e4f5c7..991caef 100644
--- a/IPython/nbconvert/filters/tests/test_markdown.py
+++ b/IPython/nbconvert/filters/tests/test_markdown.py
@@ -1,19 +1,7 @@
+"""Tests for conversions from markdown to other formats"""
 
-"""
-Module with tests for Markdown
-"""
-
-#-----------------------------------------------------------------------------
-# Copyright (c) 2013, the IPython Development Team.
-#
+# Copyright (c) IPython Development Team.
 # Distributed under the terms of the Modified BSD License.
-#
-# The full license is in the file COPYING.txt, distributed with this software.
-#-----------------------------------------------------------------------------
-
-#-----------------------------------------------------------------------------
-# Imports
-#-----------------------------------------------------------------------------
 
 from copy import copy
 
@@ -24,10 +12,6 @@ from ...tests.base import TestsBase
 from ..markdown import markdown2latex, markdown2html, markdown2rst
 
 
-#-----------------------------------------------------------------------------
-# Class
-#-----------------------------------------------------------------------------
-
 class TestMarkdown(TestsBase):
 
     tests = [
@@ -68,6 +52,19 @@ class TestMarkdown(TestsBase):
         for index, test in enumerate(self.tests):
             self._try_markdown(markdown2html, test, self.tokens[index])
 
+    def test_markdown2html_math(self):
+        # Mathematical expressions should be passed through unaltered
+        cases = [("\\begin{equation*}\n"
+                  "\\left( \\sum_{k=1}^n a_k b_k \\right)^2 \\leq \\left( \\sum_{k=1}^n a_k^2 \\right) \\left( \\sum_{k=1}^n b_k^2 \\right)\n"
+                  "\\end{equation*}"),
+                 ("$$\n"
+                  "a = 1 *3* 5\n"
+                  "$$"),
+                  "$ a = 1 *3* 5 $",
+                ]
+        for case in cases:
+            self.assertIn(case, markdown2html(case))
+
 
     @dec.onlyif_cmds_exist('pandoc')
     def test_markdown2rst(self):