The Yankees were never interested in meeting the White Sox demands for John Danks, which were said to be as great as the package of prospects Colorado received for Ubaldo Jimenez last summer.
No team would, in their right mind, trade multiple top prospects for one year of a starter who isn't on the same level as, say, Cliff Lee. Danks is good, he's not elite, and he only had one year left under team control. That's not the kind of player a team deals Manny Banuelos and Jesus Montero for.
Maybe the Sox plan all along was to lock up Danks this winter, and that's why their demands were so high on the trade market.