Green stuff on the brass means one thing: verdigris.
It's a corrosive reaction between the copper in the brass alloy, and acids in the leather of the sheath (I assume they were stored in the sheaths). It can be cleaned up, and should be done soon. I wouldn't worry too much about the wood handles. Chances are, the stuff on them is just from incidental contact with the stuff in the sheath. The greatest potential for damage is in the sheath itself. The green stuff will keep forming underneath the rivets, until it basically forces them out. Check the inside of the sheaths. I'm betting most of the green stuff is in there, on/around the rivets in the leather, OR around the spots where the brass pins on the knife were touching the leather.
You should be able to clean up the green stuff from the brass pins on the knife pretty easily. Any polishing paste will do it. I've also heard of people using vinegar to clean it off. Just make sure to thoroughly clean the knife afterwards, as the vinegar is acidic itself.
Avoid storing the knives in the sheaths. That's how the problem begins.