CEO Ron Kruszewski says market conditions and the fiduciary rule are dampening growth at the firm and throughout the industry.

Amid reports of a possible sale, assets rise and expenses fall.

CEO Sergio Ermotti pledged that cost-cutting efforts are to continue.

Client assets for the firm's advisory business hit a record high.

"Optimizing choice for our clients … is critical to how we operate as a firm," CEO James Gorman said during an earnings call where the wirehouse reported net revenue was a record $3.9 billion last quarter.

Headcount rises for the 11th consecutive quarter for the wirehouse, which is prepping for the Department of Labor's fiduciary rule.

J.P. Morgan Chase, Citigroup, First Republic and Bank of America were among the institutions questioned on the issue of incentive compensation.

Net income for the wealth management unit rose to $677 million from $606 million for the year-ago period.

Profits and revenues are down for all but one of the brokerages.

Revenue continues to fall for the industry's largest brokerages, but lending remains strong.