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.

"I think the DoL rule has a disproportionate impact on the independent business, and that affected our decision-making," says Ron Kruszewski.

With core business down and adviser headcount shrinking, the brokerage nets a profit by selling non-essential divisions.

Lending and cost cutting helped drive net income higher during the recent quarter, the wirehouse reported.

The country's largest independent broker-dealer added 100 advisers in the second quarter.

Net revenues fell 2% in the second quarter compared to a year ago, according to the firm.